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Oil Down, Even as U.S. Fuel Inventory Fall Indicates Demand Surge
Oil was down Friday morning in Asia even as data released on Thursday said U.S. fuel inventories fell and demand surged as economic recovery drove consumption.
Brent oil futures fell 0.32% to $73.88 by 10:10 PM ET (2:10 AM GMT) and crude oil WTI futures edged down 0.18% to $72.81.
Crude oil supply data from the U.S. Energy Information Administration (EIA) showed a draw of 6.866 million barrels. Forecasts prepared by Investing.com predicted a 4.033 million-barrel draw, while a 6.718 million-barrel draw was recorded during the previous week. The EIA also said fuel demand surged to 10 million barrels a day in the week before Jul. 4 U.S. holiday.
Meanwhile, crude oil supply data from the American Petroleum Institute released a day before showed a draw of 7.983 million barrels.
World stocks steady, Treasuries yields edge up as Delta variant spreads
World stocks steadied, Treasury yields bounced and the dollar held firm on Friday as markets took a cautious breather in the face of fresh concerns over the pace of the world’s economic recovery from COVID-19.
Markets have been roiled this week as a rise in cases of the Delta coronavirus variant globally crimped risk appetite and led to a flight to safety as some bet the post-pandemic reflation trade is over for now.
“There seems to be the gradual realisation for many that the vaccination programmes alone won’t prove enough to get economies back to their pre-Covid normality, with cases at the global level now ticking up again as the more infectious delta variant spreads across the world,” said Deutsche Bank (DE:DBKGn) analyst Jim Reid.
The MSCI World index was unchanged in early European trading, as gains among many regional bourses helped offset overnight weakness in Asia. The STOXX Europe 600 index was up 0.8%.
Dollar Up, Risk Aversion Increases Alongside Concerns Over Economic Recovery
The dollar was up on Friday morning in Asia, as concerns over the global economic recovery from COVID-19 continue to mount. Safe-haven currencies such as the Japanese yen and Swiss franc also gained, while riskier currencies such as the Australian and New Zealand dollars remained near multi-month lows.
The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched up 0.05% to 92.453 by 11:47 PM ET (3:47 AM GMT). However, the U.S. currency dropped from a three-month high.
The USD/JPY pair edged up 0.15% to 109.95, with the yen holding onto gains from the previous session’s 0.8% rally. However, Japan has declared a fresh state of emergency in Tokyo, three weeks before the Olympic Games are due to open in the city, as COVID-19 case numbers continue to rise.
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