Oil prices rose to a 13-week high

Reporters noted that crude oil futures prices on Wednesday rose to their highest level in 13 weeks. U.S. gasoline demand continues to rise, along with expectations of higher overseas demand for crude concerns about the supply outlook in several countries, boosting oil prices.

WTI crude was up 0.14% at $122.28 at press time. Oil was up 2.69 percent at $123.81.

The U.S. Energy Information Administration reported on Wednesday that U.S. commercial crude oil inventories unexpectedly rose last week, but EIA Strategic Petroleum Reserve inventories fell by a record 7.269 million barrels in the week ended June 3, as refinery inputs rose to their highest level since January 2020.

In addition, inventories at Cushing, Okla., the nation's largest storage center, fell 1.59 million barrels last week. Gasoline inventories also fell, while demand rose.

Rebecca Babin, senior energy trader at CIBC Private Wealth Management, said this week's government inventories report showed "implied gasoline demand is back to its five-year average". "Technical fundamental factors are positive." WTI appears to be able to hold $120, a level it failed to hold in the past week, she said.

Speaking at a conference in Jordan earlier today, Uae Energy Minister Suhail al-Mazrouei said the outlook for improving Chinese demand meant crude prices were likely to continue rising. Suhail al-Mazrouei added that the amount of oil producers could add to the market was " very encouraging", underlining concerns about spare capacity in the oil market.

Earlier, several banks, including Goldman Sachs Group Inc. Morgan Stanley, emphasized raising oil prices in the coming months.

Since the start of the summer, us refined oil product inventories have been falling, underscoring the tight supply fundamentals. After the Memorial Day weekend, average weekly U.S. gasoline demand rose to 9 million barrels a day for the first time this year. Demand is rising even as average gasoline prices in the United States have hit a record high near $5 a gallon.

Diesel prices have surged faster than gasoline are at an unusually high premium at this time of year as the rest of the world relies on the US to supply Europe with a wide range of petroleum products. A European Union ban on purchases of Russian refined oil products for the next few months is exacerbating an already tight fuel market.

The oil market has maintained its momentum this year as the economy rebounds the pandemic. Last week, Opec + increased production by more than previously planned, although the cartel has struggled in recent months to meet its targets.

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Source: Zhitong Financial network