Bullish Inventory Report Propels Energy Prices
July 30, 2021
The bullish inventory report this week and the falling dollar helped energy prices continue their run to the upside. It appears traders still believe that demand will remain strong despite the increase in COVID-19 cases. The outlook remains that demand will outpace supply at the end of the year keeping inventories tight and supporting prices. Energy prices are down slightly this morning in what is very likely some profit-taking after yesterday’s rally.
The Fed at the conclusion of their two-day meeting decided to leave the federal funds interest rate in the range of 0% to 0.25%, which is seen as a negative for the dollar.
The news is very quiet this morning with no new stories to potentially impact the market. Traders continue to watch how the coronavirus cases progress, but it seems that here in the US most analysts do not see any across-the-board lockdowns, helping to keep the demand outlook positive. In the UK the cases of the delta variant have fallen off in a surprising turn.