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Crude rebounds as U.S. supplies point to rising demand for fuel

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Shutterstock photo - Oil prices rebounded on Thursday, brushing off earlier losses after weekly oil and gasoline stockpile data pointed to an uptick in demand for fuels and energy in the world's largest economy.

On the New York Mercantile Exchange, light sweet crude futures for delivery in July traded up 0.20% at USD93.32 a barrel on Thursday, off from a session high of USD93.98 and up from an earlier session low of USD91.68.

The U.S. Energy Information Administration reported earlier that U.S. crude oil Inventories rose by 3 million barrels last week, up from a decline of 338,000 in the week before.

Analysts were expecting oil stockpiles to fall by 350,000, and the size of the increase left traders interpreting that demand is set to increase more than once expected.

Gasoline inventories, meanwhile, fell by 1.514 million barrels from a gain of 3.015 million barrels in the preceding week, which caught markets off guard.

Analysts were expecting gasoline inventories to rise by 61,000, which sent oil prices erasing earlier losses on sentiments the U.S. summer driving season may be stronger than expected.

Soft U.S. growth and jobs data sent prices falling earlier.

The Commerce Department reported earlier that U.S. first-quarter gross domestic product growth was revised down to 2.4% from a preliminary reading of 2.5%.

Elsewhere, the Department of Labor said the number of people who filing for initial jobless claims in the U.S. rose by 10,000 to a seasonally adjusted 354,000 last week, compared to expectations for a decline of 4,000 to 340,000.

A separate report released by the National Association of Realtors said that its April pending home sales index rose 0.3% to hit the highest level on three years, though the number fell short of market calls for a 1.1% increase.

Elsewhere on the ICE Futures Exchange, Brent oil futures for July delivery were down 0.31% at USD102.12 a barrel, up USD8.80 from its U.S. counterpart. - offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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