(Bloomberg) -- Oil traded near $66 a barrel following four days of gains as falling U.S. crude inventories added to evidence energy demand is picking up.
Futures in New York edged lower in Asia after closing at the highest in more than a week. American inventories shrunk by 1.66 million barrels to the lowest since late February, according to government data, while gasoline and distillate supplies also dropped. Gauges of U.S. fuel demand continue to highlight progress toward a return to normal consumption levels.
The consumption recovery in the U.S. and elsewhere -- road use in the U.K. matched its highest level since the pandemic began -- is assuaging concern about a return of Iranian barrels if sanctions on the country are lifted. It’s also outweighing a drop in consumption in parts of virus-hit Asia, most notably India, where the oil industry is struggling to predict when demand will recover.
The Energy Information Administration report showed a rolling four-week average of gasoline supplied topped 9 million barrels a day for the first time since March 2020. Distillate stockpiles were at the lowest since April 2020.
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