Oil was somewhat higher on Wednesday morning in Asia, boosted by expectations for rising fuel demand as the global economy reopens.
Brent futures increased 0.26% to $72.41 by 10:17 PM ET (2:17 AM GMT) and crude futures were up 0.33% to $70.28.
Tuesday’s U.S. crude oil supply data from the American Petroleum Institute revealed a draw of 2.108 million barrels for the week closing June 4. Energy analysts have anticipated a build of 3.576-million barrels after a 5.360-million-barrel build during the past week.
The American Petroleum Institute reportedly confers a draw of 2.11M barrels of oil for the week closed June 4.
Gasoline inventories reportedly dispense a build of 2.41M barrels. Distillate inventories confer a build of 3.75M barrels, and Cushing inventories bestow a draw of 420K barrels.
Data to be published tomorrow from the Energy Information Administration is supposed to record crude inventories fell by 4.1M barrels last week, as stated by S&P Global Platts.
July WTI crude (CL1:COM) was recently held at $70.06/bbl in electronic trading after ending today at $70.05/bbl.
Investors now anticipate crude oil supply data from the U.S. Energy Information Administration, due later in the day.
Investors remain optimistic about the outlook for fuel demand on the demand aspect as accelerating vaccinations allow people to travel more.
The U.S., the world’s biggest oil customer, lowered travel information for several countries, including France, Canada, and Germany, making it likely to loosen airline restrictions for trips overseas.
The fundamental forecast for crude is bullish right now. The easing of travel constraints will be a game-changer for the international air travel outlook. The latter part of the equation for a strong demand recovery, Edward Moya, senior market analyst at Oanda Corp., told Bloomberg.
Meantime, U.S. shale oil production is reportedly set to increase only somewhat through 2022, despite a pickup in drilling propelled by gains in crude prices. It appears as the Energy Information Administration expected a reduction in its shale output for 2022, as stated in a monthly report.