Oil edges higher, stabilizing after gasoline inventory rise

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Oil futures edged higher Thursday, stabilizing after a jump in U.S. gasoline inventories pressured the complex in the previous session.

West Texas Intermediate crude for July delivery
CL00,
+0.21%

CLN21,
+0.21%
rose 13 cents, or 0.2%, to $70.09 a barrel on the New York Mercantile Exchange. August Brent crude, the global benchmark,
BRN00,
+0.36%

BRNQ21,
+0.36%
was up 23 cents, or 0.3%, at $72.45 a barrel on ICE Futures Europe.

Oil futures lost ground Wednesday, a day after WTI closed above $70 a barrel for the first time since October 2018, with weakness tied to weekly data showing a 7 million barrel rise in U.S. gasoline inventories, which offset a drop in crude supplies.

“The uptrend for oil remains intact, but the data has served to rein the bulls in and remind us that the road to recovery isn’t linear,” said Sophie Griffiths, market analyst at Oanda, in a note.

The unexpected rise in gasoline inventories reflected rainy weather over the eastern half of the U.S. over Memorial Day weekend, analysts said.

“Refiners were running at accelerated levels heading into the beginning of summer driving season, but rain pummeled a large part of the area from the Midwest to East Coast, with New Jersey getting over 3 inches of precipitation on Saturday and Sunday,” said Robert Yawger, director of energy futures at Mizuho Securities, in a note.



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Written by bourbiza

Bourbiza Mohamed. Writer and Political Discourse Analysis.

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