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Crude oil futures tilted lower Tuesday after ending the previous session at nearly two-month highs, as the oil market awaits the weekly U.S. inventories report for indications of demand for crude and gasoline ahead of the July 4 holiday weekend.
Claudio Galimberti, director of global market analysis at Rystad Energy, predicts “another significant crude inventory draw in the U.S. this week, supporting the bullish sentiment thanks to resurgent product demand, increasing refinery runs and flat crude production,” according to Dow Jones.
Analysts in a Wall Street Journal survey forecast a 2.3M-barrel drawdown in crude stocks and a 1.2M-barrel decrease in gasoline.
Galimberti said expectations for a summer surge in fuel demand have been helped by strong growth in aviation; Rystad forecasts demand for jet fuel will rise by 550K bbl/day, following a 1.2M bbl/day jump last year.
“For the time being, this strength in aviation activity signals a positive trend for oil demand, particularly in the context of summer travel, economic recovery and consumer optimism,” Galimberti wrote.
Front-month Nymex crude (CL1:COM) for August delivery closed -1% to $80.83/bbl, and front-month August Brent crude (CO1:COM) settled -1.1% to $85.01/bbl.
ETFs: (NYSEARCA:USO), (BNO), (UCO), (SCO), (USL), (DBO), (DRIP), (GUSH)
Oilprice.com listed the world’s top seven oil companies by proved reserves, led by Saudi Aramco (ARMCO), whose 258.8B boe far outpaces any other company.
Aramco’s proved reserves are more than 4x bigger than the reserves of the next six companies on the list combined: Exxon Mobil (XOM), Chevron (CVX), TotalEnergies (TTE), Shell (SHEL), BP (BP) and Eni (E).