(Bloomberg) -- Oil was steady after a two-day gain as the market digested U.S. President Joe Biden’s request for OPEC to restore supply faster to help make gasoline prices more affordable for Americans.
Futures in New York slumped after the news on Wednesday before a weaker dollar helped them recoup losses to close 1.4% higher. The U.S. has seen gasoline pump prices rise in recent months, putting pressure on drivers who are back on the road as pandemic restrictions ease. American motor fuel stockpiles shrunk for a fourth time last week to the least since November, according to Energy Information Administration data.
See also: Biden Pressures OPEC to Speed Production to Lower Gas Prices
The OPEC+ alliance last month agreed to make hike production by around 400,000 barrels a day each month from August until all of the output halted during the pandemic is revived. U.S. National Security Advisor Jake Sullivan said in a statement on Wednesday that recent supply increases by the group were “simply not enough.”
The prompt timespread for Brent was 37 cents a barrel in backwardation -- a bullish structure where near-dated contracts are more expensive than later-dated ones. That compares with 92 cents at the end of July.
The economic rebound by key consumers such as the U.S. has helped to drain bloated fuel stockpiles built up during the pandemic, although steps to rein in the delta virus variant, particularly in China, are clouding the outlook. The International Energy Agency is set to release its monthly market report later on Thursday, giving an indication of what impact it sees delta having on oil demand.
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