Oil prices rose on Thursday after slipping after data indicating weak demand for the U.S. driving season, when investors saw U.S. economic data.
Brent crude oil futures rose 18 cents or 0.25% to $ 72.40 a barrel at around 1024 GMT, maintaining a timid height not seen since May 2019.
U.S. West Texas Intermediate Oil Futures rose 11 cents, or 0.16%, to $ 70.07 a barrel, keeping it close to its highest since October. 2018.
“The market is recovering brilliantly from yesterday’s Dismal Weekly EIA report, which was a very disappointing drop in Weekly petrol demand,” said Tamas Varga, an analyst at PVM Oil Associates.
“It will be interesting to see whether the OPEC’s monthly report, which will be published later, will confirm the optimal demand for the last month of the second half of the year. If it does, it should, as expected, protect oil prices.”
Varga added that U.S. inflation data and jobless claims will provide more guidance on the health of the world’s largest economy and clues as to whether the Federal Reserve could start reducing incentives.
U.S. crude oil reserves, which include the Strategic Oil Reserve (SPR), fell 11 weeks in a row as refineries increased production, but fuel inventories rose sharply due to weak consumer demand, the Energy Information Administration (EIA) said Wednesday. [EIA/S]
Gross inventories excluding SPR fell 5.2 million barrels per week to June 4, to 474 million barrels, for the third time in a row once a week. But fuel stocks rose sharply, with supplies supplied down 17.7 million barrels per day (bpd) from 19.1 million last week.
Implied gasoline demand fell to 8.48 million bpd per week through June 4, down from 9.15 million bpd the previous week, but up from 7.9 million bpd a year ago, EIA data showed.
According to prices, India’s fuel demand fell in May to its lowest since August last year, halting mobility with the second wave of COVID-19 and reducing economic activity in the world’s third-largest oil consumer.
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