Shutterstock photo
Markets

WTI oil futures extend gains after bullish U.S. supply report

Shutterstock photo

Shutterstock photo

Investing.com -

Investing.com - West Texas Intermediate oil extended gains on Wednesday to hit the highest levels of the session after data showed that oil supplies in the U.S. fell more than expected last week.

On the New York Mercantile Exchange, crude oil for delivery in August rallied 1.2%, or $1.20, to trade at $101.16 a barrel during U.S. morning hours. Prices were at $100.71 a barrel prior to the release of the supply data.

U.S. oil futures fell to $99.01 a barrel on Tuesday, the lowest since May 5, before ending the day at $99.96, down 0.94%, or 95 cents.

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories declined by 7.5 million barrels in the week ended July 11, compared to expectations for a decline of 2.1 million barrels.

Total U.S. crude oil inventories stood at 375.0 million barrels as of last week.

The report also showed that total motor gasoline inventories increased by 0.2 million barrels, below forecasts for a gain of 0.6 million barrels, while distillate stockpiles rose by 2.5 million barrels, above expectations for an increase of 1.7 million barrels.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for September delivery rose 0.59%, or 63 cents, to trade at $107.51 a barrel.

Official data released earlier showed that China's economy expanded at an annual rate of 7.5% in the second quarter, above expectations for growth of 7.4%.

A separate report showed that industrial production in China rose by an annualized rate of 9.2% in June, compared to expectations for a 9% increase, after an 8.8% gain in the previous month.

China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.

London-traded Brent prices fell to $105.59 on Tuesday, the lowest since April 7, before trimming losses to settle at $106.88, down 0.77%, or 83 cents, as worries over potential supply disruptions in the Middle East continued to subside.

Investing.com offers an extensive set of professional tools for the financial markets.

Read more News on Investing.com and download the new Investing.com Stocks & Forex App for Android!

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


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

Other Topics

ForEx