Oil is rebounding today from the lowest price in almost a week as investors bet that fuel demand may increase amid signs the U.S. and Chinese economies are strengthening.
Distillate supplies, including diesel and heating oil dropped 1.4 million barrels and crude stockpiles rose 1.9 million.
Oman's Oil Minister Mohammed Al-Rumhy said yesterday that oil prices are "a bit high."
In any event, U.S. exports of gasoline, diesel and other fuels will more than double in the next three years as refiners take advantage of a growing supply of domestic crude and ship more fuel to emerging markets.
Exports are currently expected to rise by 450,000 barrels a day by 2015 as domestic demand shrinks and more products are sent to Latin America, Africa and other regions where fuel use is rising.
by Simon Watkins for Emerging Money
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