Oil Prices Gets a Boost Ahead of US Inventory Data

The Wall Street Journal reported that the oil price rose on Wednesday as the upcoming weekly US inventory data is expected to reflect a strong refiner demand for oil and consumer demand for gasoline.

As quoted in the market news:

The benchmark U.S. contract for July was up 95 cents, or 1.6 percent, at $60.92 a barrel on the New York Mercantile Exchange. The global Brent crude contract for August rose $1.06, or 1.7 percent, to $64.76 a barrel on the ICE Futures Europe exchange.

Analysts said both contracts were being pulled up by the gasoline market, where prices rose 4.7 cents, or 2.2 percent, at $2.1710 a gallon.

Analysts expect total domestic oil stockpiles declined for a seventh consecutive week last week, as refiners have geared up to take advantage of low crude prices and refine as much fuel as possible at the start of the summer driving season.

Total inventories were expected to decline 1.3 million barrels, according to the average estimate of analysts surveyed by The Wall Street Journal, and gasoline stockpiles were expected to fall 200,000 barrels. But figures released late Tuesday by industry group American Petroleum Institute showed a much higher 2.9 million-barrel drop in both categories.

Click here to read the full Wall Street Journal report.