In early Asian trade on Wednesday, oil prices saw a modest increase following industry data revealing a significant drawdown in U.S. crude stockpiles, enhancing optimism for robust fuel demand during the peak summer driving season in the largest oil consumer globally.
Brent crude oil futures rose by 16 cents, or 0.2%, reaching $85.60 per barrel by 0033 GMT, while U.S. West Texas Intermediate crude futures climbed 14 cents to $82.95 per barrel, also up 0.2%. Both benchmarks had closed lower on Tuesday as concerns eased over potential production disruptions in the Gulf of Mexico due to Hurricane Beryl.
According to sources citing American Petroleum Institute figures, U.S. crude inventories decreased by 9.163 million barrels in the week ending June 28. However, gasoline stocks increased by 2.468 million barrels, while distillate stocks fell by 740,000 barrels.
Mitsuru Muraishi, an analyst at Fujitomi Securities, noted, “Oil prices were bolstered by the drawdown in U.S. crude inventories, although gains were tempered as some investors sought to capitalize on recent highs, reaching levels not seen since April.”
The Energy Information Administration (EIA), the statistical arm of the U.S. Department of Energy, is scheduled to release its weekly data on Wednesday at 1430 GMT.
With the summer travel season accelerating and the Independence Day holiday approaching, U.S. gasoline demand is expected to rise. The American Automobile Association anticipates a 5.2% increase in holiday travel compared to 2023, with car travel up by 4.8%.
In terms of supply, a survey on Tuesday indicated that OPEC‘s oil output had risen for the second consecutive month in June. This was driven by increased production from Nigeria and Iran, offsetting voluntary supply cuts by other members and the broader OPEC+ alliance.
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