Investing.com – Crude oil futures added to gains on Wednesday, after a government report showed that U.S. crude oil inventories fell-more-than-expected last week, easing concerns over a slowdown in demand from the U.S.
On the New York Mercantile Exchange, light sweet crude futures for delivery in August traded at USD98.69 a barrel during U.S. morning trade, gaining 0.68%.
It earlier rose as much as 1.3% to trade at USD99.38 a barrel, the highest price since July 7.
The contract traded at USD98.41 prior to the release of the Energy Information Administration data.
The U.S. EIA said in its weekly report that U.S. crude oil inventories fell by 3.7 million barrels in the week ended July 15, significantly higher than expectations for a 1.5 million barrel decline.
Crude supplies fell by 3.1 million barrels in the preceding week.
U.S. oil supplies have fallen for seven consecutive weeks, the longest run of declines in two years.
Total U.S. crude oil inventories stood at 351.7 million barrels as of last week, remaining above the upper limit of the average range for this time of year.
Total motor gasoline inventories increased by 0.8 million barrels, confounding expectations for a 0.1 million barrel decline.
Gasoline production increased last week, averaging 9.2 million barrels per day.
Energy traders have been closely eyeing gasoline stockpiles as the U.S. driving season entered its peak gasoline demand period.
Weakness in the dollar had also contributed to oil’s strength. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.37% to trade at 75.22.
Oil prices typically strengthen when the U.S. currency weakens as the dollar-priced commodity becomes cheaper for holders of other currencies.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for September delivery rose 0.7% to trade at USD118.08 a barrel, up USD19.39 on its U.S. counterpart.
On the New York Mercantile Exchange, light sweet crude futures for delivery in August traded at USD98.69 a barrel during U.S. morning trade, gaining 0.68%.
It earlier rose as much as 1.3% to trade at USD99.38 a barrel, the highest price since July 7.
The contract traded at USD98.41 prior to the release of the Energy Information Administration data.
The U.S. EIA said in its weekly report that U.S. crude oil inventories fell by 3.7 million barrels in the week ended July 15, significantly higher than expectations for a 1.5 million barrel decline.
Crude supplies fell by 3.1 million barrels in the preceding week.
U.S. oil supplies have fallen for seven consecutive weeks, the longest run of declines in two years.
Total U.S. crude oil inventories stood at 351.7 million barrels as of last week, remaining above the upper limit of the average range for this time of year.
Total motor gasoline inventories increased by 0.8 million barrels, confounding expectations for a 0.1 million barrel decline.
Gasoline production increased last week, averaging 9.2 million barrels per day.
Energy traders have been closely eyeing gasoline stockpiles as the U.S. driving season entered its peak gasoline demand period.
Weakness in the dollar had also contributed to oil’s strength. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.37% to trade at 75.22.
Oil prices typically strengthen when the U.S. currency weakens as the dollar-priced commodity becomes cheaper for holders of other currencies.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for September delivery rose 0.7% to trade at USD118.08 a barrel, up USD19.39 on its U.S. counterpart.