TOKYO: Oil rose on Wednesday as worries about an increase in supplies from Iran were offset by optimism about improving US fuel demand that was reinforced by a drop in weekly inventory estimates.
Brent crude oil futures for July rose 44 cents, or 0.6 per cent, to $69.09 a barrel by 0710 GMT, while US West Texas Intermediate crude for July was at $66.35 a barrel, up 28 cents, or 0.4 per cent.
Both benchmarks had edged higher on Tuesday amid hopes for higher demand during the northern hemisphere’s summer season and a lifting of coronavirus curbs.
US crude oil and fuel inventories fell last week, said two sources.
Crude stocks fell by 439,000 barrels in the week ended May 21. Gasoline inventories fell by 2 million barrels and distillate stocks fell by 5.1 million barrels, the data showed.
“The API data was good’’, said Kazuhiko Saito, chief analyst at commodities broker Fujitomi Co, predicting oil prices to rise toward $70 a barrel on expectations of recovering fuel demand. — Reuters