Oil prices rose on Wednesday, rebounding from losses early in the session on lift from encouraging figures on US gasoline demand and as a lower-than-expected US inflation figure drove investors into riskier assets.
Brent crude futures rose 68 cents, or 0.7%, to $96.99 a barrel as of 1746 GMT. US West Texas Intermediate crude futures gained 83 cents, or 0.9%, to $91.33.
US crude oil stocks rose by 5.5 million barrels in the most recent week, the US Energy Information Administration said, more than the expected increase of 73,000 barrels.
However, US gasoline stocks fell sharply as implied demand rose after weeks of lacklustre activity during what is supposed to be peak summer driving season.
“Everyone has been very much focused on potential demand destruction, so seeing implied demand showing an outsized rebound for last week has probably given some comfort to those really concerned about that,” said Matt Smith, lead oil analyst for Americas at Kpler.
Gasoline product supplied rose in the most recent week to 9.1 million bpd, though that figure still shows demand down 6% over the past four weeks compared with the year-ago period.
US oil refiners and pipeline operators expect strong energy consumption for the second half of 2022, a Reuters’ review of company earnings calls showed.
US consumer prices were unchanged in July due to a sharp drop in the cost of gasoline, delivering the first notable sign of relief.
Published in The Express Tribune, August 11th, 2022.
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