US Crude Oil Inventories Expected to Fall Amid Robust Demand
A recent survey suggests that US crude oil and refined product inventories are expected to decline last week. According to the preliminary data, four surveyed analysts estimated a drop of approximately 2 million barrels in US crude oil inventories for the week ending July 31.
The anticipated decline in crude oil inventories, combined with simultaneous drops in gasoline and distillate stocks, reflects robust crude demand, providing bullish support for both spot and futures crude prices.
As a result of rising crude prices, the cost of producing asphalt increases, offering a modest boost to its price. The main petroleum asphalt contract (2706) on the Shanghai Futures Exchange closed at 3,564 RMB/tonne on August 3, down 15 RMB/tonne from the previous trading day.
Rising oil prices also increase production costs for liquefied petroleum gas (LPG), providing a slight lift to its price. The main LPG contract (2610) on the Dalian Commodity Exchange closed at 5,338 RMB/tonne on August 3, down 15 RMB/tonne from the previous trading day.