Oil rebounds after hitting multi-month lows amid surprise inventories…

Oil rebounds after hitting multi-month lows amid surprise inventories…

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Oil prices recovered modestly in Asian trading Thursday morning after falling to multi-month lows on a sudden rise in inventories that signaled a slowdown in US demand.

What happened: US crude inventories rose 4.5 million barrels to 426.6 million barrels in the week ended July 29, according to the Energy Information Management (EIA). Gasoline stocks also posted a surprise rise as demand eased.

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Crude inventories in Cushing, Oklahoma, the supply hub for US futures, rose 926,000 barrels for the week. Reuters reported.

take experts: “You would expect exports to be overstated as Brent/WTI spiraled out of control, but exports are down more than a million barrels on the week,” bob yawger, Director of Energy Futures at Mizuho, ​​according to the report.

Developments on the supply side: That Organization of Petroleum Exporting Countries OPEC (OPEC) and allies, including Russia OPEC+decided to increase the group’s production target by 100,000 barrels/day from September.

Price promotion: West Texas Intermediate (WTI) futures rose 0.58% to trade near the $91.19/barrel level. Brent futures gained 0.42% to trade at $97.19/barrel. Both benchmarks had previously fallen to their weakest levels since February.

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