Fundamental analysis
24 June, 2021
Oil prices gained for a second day on Thursday after drawdowns in U.S. inventories and accelerating German economic activity bolstered confidence in the fuel demand recovery. Doubts about the future of the 2015 Iran nuclear deal that could end U.S. sanctions on Iranian crude exports further supported prices. Both benchmarks hit their highest since October 2018 on Wednesday, but pared gains later in the session as energy traders locked in profit after the U.S. inventory report, Edward Moya, senior market analyst at brokerage OANDA, said in a report. Further stoking expectations of a European fuel demand recovery, data from Germany showed the largest upward leap in retail conditions since German reunification more than three decades ago. Across the Atlantic, U.S. crude inventories fell by 7.6 million barrels in the week to June 18 to 459.1 million barrels, their lowest since March 2020, the U.S. Energy Information Administration said. The drawdown was nearly double analysts' expectations in a Reuters poll for a 3.9 million-barrel drop.
