Oil was up Thursday morning in Asia after the U.S., one of the top oil consumers globally, called for producers to boost output. However, the call reinforced supply concerns as economies ease their COVID-19 restrictive measures and kept gains modest.
U.S. President Joe Biden on Wednesday called for the Organization of the Petroleum Exporting Countries (OPEC) and its allies, or OPEC+, to boost oil output.
Biden’s request came as gasoline prices in the U.S. have risen in recent months, threatening the economic recovery from COVID-19. The rising prices have put pressure on drivers on the road during the summer peak driving season, and the U.S. Energy Information Administration (EIA) reported that American motor fuel stockpiles shrunk for a fourth time last week to the least since November 2020.
OPEC+ has already hiked production by around 400,000 barrels a day monthly beginning in August, which will continue until all the output halted during COVID-19 is revived. However, U.S. National Security Advisor Jake Sullivan said on Wednesday that even these increases are “simply not enough.”
Meanwhile, U.S. crude oil supply data from the EIA showed a draw of 447,000 barrels in the week to Aug. 6. Forecasts prepared by Investing.com predicted a 1.271-million-barrel draw, while a build of 3.626 million barrels was recorded during the previous week.
Crude oil supply data from the American Petroleum Institute from the day before showed a draw of 816,000 barrels.