- Crude oil prices fell Thursday morning after the largest three-day rally since March
- WTI has risen nearly 10% since last Friday as U.S. oil stocks shrank, Indian jet fuel demand rebounded, and China’s swift effort to contain the virus brings optimism
- American fuel demand has been strong despite fears that the resurgent virus would temper consumption
- Indians are returning to the air after months of being corralled in their homes during its Covid-19 wave, driving an increase in jet fuel usage (Bloomberg)
- Jet fuel has been the hardest hit oil product since the pandemic
- Air travel has climbed sharply, according to STIC Travel
- The EIA reported a 2.9 MMBbl decrease in crude oil inventories for the week ended August 20 on Wednesday
- The bulls welcomed a draw in crude oil stocks, but a large withdrawal in gasoline inventories lent more support to prices as the sizable draw came amid the delta variant surge in the U.S.
- Fuel consumption, measured by the amount of gasoline sent to the market, last week rose to the highest level since the end of July (Bloomberg)
- Some analysts were expecting a dip in gasoline demand due to the virus