SULAIMANI (ESTA) — Oil prices edged higher on Thursday as crude supplies in the United States fell more sharply than expected as refining output rose and exports surged.
Brent crude futures rose by 22 cents to $69.18 a barrel at 0629 GMT, and U.S. West Texas Intermediate (WTI) crude futures gained by 13 cents to $65.76 per barrel.
“As the roll-out of vaccines continues and a pent-up summer driving season continues to manifest, this trend should accelerate, keeping demand for motor fuels robust and boosting market confidence in the recovery story,” analysts from Citi Group told Reuters.
The Energy Information Administration said on Wednesday that U.S. crude stocks fell more than expected last week as refining output rose and exports surged, according to Reuters.
Crude inventories fell by 8 million barrels in the week to April 30 to 485.1 million barrels.
“We think U.S. demand is strong,” said analysts from Commonwealth Bank of Australia. “The U.S. refinery utilization rate is now above the five-year average.”
The Commonwealth Bank analysts said U.S. jet fuel demand is expected to surge by 30% in the second quarter compared with the first quarter on increased domestic travel, Reuters said.
