Oil prices rose in early Asian trade on Wednesday after industry data showed a larger-than-expected decline in U.S. crude inventories, boosting hopes of solid fuel demand during the summer driving season in the world’s top oil-consuming nation.
Brent crude futures rose 16 cents, or 0.2%, to $85.60 a barrel by 0033 GMT. U.S. West Texas Intermediate crude futures rose 14 cents, or 0.2%, to $82.95 a barrel.
Both benchmarks closed lower on Tuesday as fears faded that Hurricane Beryl could disrupt production in the Gulf of Mexico.
U.S. crude inventories fell by 9.163 million barrels in the week ended June 28, according to market sources citing data from the American Petroleum Institute on Tuesday. However, gasoline inventories rose by 2.468 million barrels and distillates fell by 740,000 barrels.
Analysts in a Reuters poll had forecast a 700,000-barrel drop in crude oil inventories, a 1.3 million-barrel drop in gasoline inventories and a 1.2 million-barrel drop in distillate inventories.
“Oil prices were supported by falling U.S. crude inventories, but gains were limited as some investors were still looking to take profits from the recent rally to reach the highest levels since April,” said Mitsuru Muraishi, an analyst at Fujitomi Securities.
The Energy Information Administration, the statistical arm of the U.S. Department of Energy, will release its weekly data on Wednesday at 1430 GMT.
Gasoline demand in the U.S. is expected to increase as the summer travel season kicks off with the Independence Day holiday this week. The American Automobile Association has forecast that holiday travel will be 5.2% higher than in 2023, with car trips up 4.8%.
On the supply side, oil production from the Organization of the Petroleum Exporting Countries (OPEC) rose for a second straight month in June, a Reuters poll showed on Tuesday, as increased supplies from Nigeria and Iran offset the impact of voluntary supply cuts by other members and the broader OPEC+ alliance.
Hurricane Beryl, which is moving through the Caribbean Sea, is expected to have weakened to a tropical storm by the time it enters the Gulf of Mexico later this week, according to the U.S. National Hurricane Center. (Reporting by Yuka Obayashi; Editing by Sonali Paul)
