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Oil Futures Settle Higher As Crude Stockpiles Drop

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Oil Futures Settle Higher As Crude Stockpiles Drop

Crude oil futures settled higher on Wednesday, rising for a fourth successive session, after data showed a drop in U.S. crude inventories in the week ended May 21st.

Expectations that fuel demand in the U.S. will see a surge ahead of the summer driving season contributed as well to oil’s uptick.

Worries about a likely excess supply in the market in the event of a return of Iranian supply limited oil’s gains. According to reports, talks between Iran and world powers to resolve outstanding issues on a nuclear accord will continue in Vienna this week.

West Texas Intermediate Crude oil futures for July ended up by $0.14 or about 0.2% at $66.21 a barrel.

Data released by Energy Information Administration (EIA) showed crude oil inventories in the U.S. dropped by 1.662 million barrels last week, much higher than an expected draw of about 1.05 million barrels.

Gasoline inventories were down by 1.745 million barrels, and distillate stockpiles declined by 3.013 million barrels in the week, data from EIA showed.

The American Petroleum Institute (API) on Tuesday reported a draw in crude oil inventories of 439,000 barrels for the week ended May 21, compared with a build of 620,000 million barrels reported for the previous week. Analysts had predicted a draw of 1.050 million barrels for the week.

The material has been provided by InstaForex Company – www.instaforex.com