Mumbai, 3 Jul (Commoditiescontrol): Crude oil prices rose in early Asian trading on Wednesday after industry data revealed a larger-than-expected draw in U.S. crude stockpiles, raising hopes for robust fuel demand during the summer driving season in the world's top oil-consuming nation.
Brent crude futures increased by 16 cents, or 0.2%, to $85.60 a barrel, while U.S. West Texas Intermediate (WTI) crude futures climbed 14 cents, or 0.2%, to $82.95 per barrel. Despite these gains, both benchmarks had closed lower on Tuesday as concerns about Hurricane Beryl disrupting production in the Gulf of Mexico subsided.
According to market sources citing American Petroleum Institute figures, U.S. crude inventories dropped by 9.163 million barrels for the week ending June 28. However, gasoline inventories increased by 2.468 million barrels, and distillate stocks decreased by 740,000 barrels. The U.S. Energy Information Administration (EIA) is set to release its official weekly data at 1430 GMT on Wednesday.
The demand for U.S. gasoline is expected to surge as the summer travel season gains momentum, coinciding with the Independence Day holiday. The American Automobile Association (AAA) forecasts a 5.2% increase in travel during the holiday period compared to 2023, with car travel up by 4.8%.
On the supply side, the Organization of the Petroleum Exporting Countries (OPEC) reported a rise in oil output for June, marking the second consecutive month of increased production. Higher supplies from Nigeria and Iran compensated for voluntary supply cuts by other OPEC members and the broader OPEC+ alliance.
Meanwhile, Hurricane Beryl, currently moving through the Caribbean Sea, is expected to weaken into a tropical storm by the time it reaches the Gulf of Mexico later this week, according to the U.S. National Hurricane Center.
(By Commoditiescontrol Bureau: 09820130172)
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