According to Reuters, crude oil futures saw minimal movement on Friday but were expected to rise for a second week due to improving demand and declining fuel and oil stocks in the US, the country that uses the most oil globally.
By 12:27 p.m. Saudi time GMT, August settlement Brent futures were down 13 cents to $85.58 per barrel, while August delivery US West Texas Intermediate crude futures were down 10 cents to $81.19.
This month, prices have increased by almost 5% to reach their highest point in over seven weeks.
“The hurricane season, the renewed conflict between Israel and Hezbollah, and the seasonal demand increase, as demonstrated by the most recent EIA (US Energy Information Administration) data, could sustain price strength into the summer,” noted Citi analysts in a report.
According to US government data issued on Thursday, the total product supplied—a measure of the nation’s oil demand—rose by 1.9 million barrels per day to 21.1 million bpd in the week ending June 14.
In contrast to economists’ estimates for a decline of 2.2 million barrels, the EIA data revealed a depletion in US oil stockpiles of 2.5 million barrels, rising to 457.1 million barrels over the week.
The EIA reported that gasoline inventories decreased by 2.3 million barrels to 231.2 million barrels, below estimates of a 600,000-barrel rise.
Prospects for demand abroad also contributed to price increases.
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