The U.S. Energy Information Administration (EIA) reported on Wednesday that crude inventories rose by 2.108 million barrels in the week ended July 16, following a decrease of 7.897 million barrels in the previous week. Economists had forecast a draw of 4.466 million barrels.

At the same time, gasoline stocks fell by 0.121 million barrels, while analysts had expected a fall of 1.043 million barrels. Distillate stocks declined by 1.349 million barrels, while analysts had forecast an advance of 0.557 million barrels.

Meanwhile, oil production in the U.S. remained unchanged at 11.400 million barrels a day.

U.S. crude oil imports averaged 7.1 million barrels per day last week, increased by 0.9 million barrels per day from the previous week.

FXStreet reports that analysts at Goldman Sachs expect commodities to "rebound sharply" following their recent sell-offs while targeting gold to reach $2000 over the coming months.

“Commodities to rebound sharply unless there are widespread lockdowns due to the spreading delta mutant coronavirus.” 

“Do not expect widespread lockdowns.”

“Even if they were it delays the rapid bounce back by six to eight weeks.” 

“Forecast gold at US$2,000/oz in 3, 6 and 12-month horizons.”