DENVER, US: US crude oil stockpiles fell more than expected last week, while gasoline and distillate inventories rose as refining activity picked up and demand dropped, the Energy Information Administration said on Wednesday.
Crude inventories fell by 3.7 million barrels to 429.3 million barrels in the week ended Aug. 2, the EIA said, compared with analysts’ expectations in a Reuters poll for a 700,000-barrel draw.
Crude stocks at the Cushing, Oklahoma, delivery hub rose by 579,000 barrels, the EIA said.
Oil futures extended gains, climbing 2 percent following the larger-than-anticipated decline in inventories. Brent crude was trading at $78.08 a barrel while West Texas Intermediate (WTI) futures were at $78.90 a barrel by 5:40 p.m. Saudi time.
“This is starting to become a trend — the sixth week in a row crude has fallen and plays into the mantra that supplies are tightening and demand is exceeding supply,” said Phil Flynn, an analyst at Price Futures Group.
The EIA on Tuesday forecast tighter supply and demand balances for 2024, raising its outlook for oil consumption but lowering its expectations for production.
Refinery crude runs rose by 252,000 barrels per day, and utilization rates were up by 0.4 percentage point to 90.5 percent of total capacity in the week, the EIA said.
Net US crude imports rose last week by 552,000 bpd, while exports were down 1.28 million bpd to 3.64 million bpd, the EIA said.
Gasoline stocks rose by 1.3 million barrels in the week to 225.1 million barrels, the EIA said, compared with expectations for a 1 million-barrel draw.
Distillate stockpiles, which include diesel and heating oil, rose by 900,000 barrels in the week to 127.8 million barrels, versus expectations for a 200,000-barrel build, data showed.
US gasoline and diesel futures also climbed following the report, despite the rise in stockpiles and data showing lower demand.
Total gasoline product supplied, a proxy for demand, fell by about 283,000 bpd to 8.97 million bpd, and distillate product supplied declined by 256,000 bpd to 3.47 million bpd.
“The bearish element was of course the drop in gasoline demand. I don’t expect us to get back over 9 million barrels any time soon,” said John Kilduff, founding partner of Again Capital.
Oil Updates — US crude inventories fall, fuel builds as demand weakens, EIA says
https://arab.news/9a64k
Oil Updates — US crude inventories fall, fuel builds as demand weakens, EIA says
- Crude inventories fell by 3.7 million barrels to 429.3 million barrels in the week ended Aug. 2
- Oil futures extended gains, climbing 2% following the larger-than-anticipated decline in inventories
Closing Bell: Saudi benchmark index closes lower at 10,540
RIYADH: Saudi equities ended Wednesday’s session lower, with the Tadawul All Share Index falling 55.13 points, or 0.52 percent, to close at 10,540.72.
The sell-off was mirrored across other indices, with the MSCI Tadawul 30 Index retreating 5.79 points, or 0.41 percent, to close at 1,393.32, while the parallel market Nomu slipped 74.56 points, or 0.32 percent, to 23,193.21.
Market breadth remained firmly negative, as decliners outpaced advancers, with 207 stocks ending the session lower against just 51 gainers on the main market.
Trading activity moderated compared to recent sessions, with volumes reaching 123.5 million shares, while total traded value stood at SR2.72 billion ($725.2 million).
On the sectoral and stock level, Al Moammar Information Systems Co. led the gainers after surging 9.96 percent to close at SR172.30, extending its rally following a series of contract announcements tied to data center and IT infrastructure projects.
Al Masar Al Shamil Education Co. climbed 4.89 percent to SR27.48, while Naqi Water Co. advanced 3.36 percent to SR58.50. Al Yamamah Steel Industries Co. and Al-Jouf Agricultural Development Co. also posted solid gains, rising 3 percent and 2.86 percent, respectively.
Losses, however, were concentrated in industrial names. Saudi Kayan Petrochemical Co. fell 3.67 percent to SR4.73, while Makkah Construction and Development Co. slid 3.44 percent to SR80.
Saudi Tadawul Group Holding Co. retreated 3.28 percent to SR147.50, weighed down by broader market weakness, and Saudi Cable Co. declined 3.18 percent to SR143.
Alkhaleej Training and Education Co. rounded out the top losers, shedding just over 3 percent.
On the announcement front, BinDawood Holding announced the signing of a share purchase agreement to acquire 51 percent of Wonder Bakery LLC in the UAE for 96.9 million dirhams, marking a strategic expansion of its food manufacturing footprint beyond Saudi Arabia.
The acquisition, which remains subject to regulatory approvals, is expected to support the group’s regional growth ambitions and strengthen supply chain integration.
BinDawood shares closed at SR4.68, up 0.43 percent, reflecting a positive market reaction to the overseas expansion move.
Meanwhile, Al Moammar Information Systems disclosed the contract sign-off for the renewal of IT systems support licenses with the Saudi Central Bank, valued at SR114.4 million, inclusive of VAT.
The 36-month contract is expected to have a positive financial impact starting from fourth quarter of 2025, reinforcing MIS’s position as a key technology partner for critical government institutions. The stock surged to the session’s limit making it the top gainer.
In a separate disclosure, Maharah Human Resources confirmed the completion of the sale of its entire stake in Care Shield Holding Co. through its subsidiary, Growth Avenue Investments, for a total consideration of SR434.3 million.
The transaction involved the transfer of 41.36 percent of Care Shield’s share capital to Dallah Healthcare, with Maharah receiving the full cash proceeds.
Despite the strategic divestment, Maharah shares closed lower, ending the session at SR6.12, down 1.29 percent.
