FX.co ★ Oil Prices Rise On Inventory Draw

Oil Prices Rise On Inventory Draw

Oil prices rose on Wednesday after industry data showed U.S. crude inventories fell more than expected, highlighting the tightening supply-demand dynamic as travel picks up in in Europe and North America.

Brent crude futures for August delivery jumped a little over 1 percent to $75.57 per barrel, while U.S. West Texas Intermediate (WTI) crude futures for July settlement were up 0.8 percent at $73.44 a barrel.

The American Petroleum Institute industry group reported late Tuesday that U.S. crude stocks fell by 7.2 million barrels for the week ending June 18, compared with expectations for a much smaller draw of 3.9 million barrels.

The API reported a build in gasoline stockpiles of 959,000 barrels for the week, while distillate inventories climbed by 992,000 barrels.

Inventory data from the Energy Information Administration will be released later in the day.

As the market continues to show tightness, the next OPEC+ meeting scheduled on July 1st remains under the spotlight.

OPEC+ is discussing a gradual increase in supply from August, but no decision has been made yet on the exact volumes, two OPEC+ sources were quoted as saying on Tuesday.

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