Oil Rebounds After a Hit From US Travel Season Data

Oil prices rose Thursday, June 10, a day after falling due to data indicating weak demand for fuel in the American driving season, while investors awaited upcoming US economic data.

Brent crude futures rose 18 cents, or 0.25%, to $72.40 a barrel, close to a peak not seen since May 2019.

US oil futures rose 11 cents, or 0.16%, to $70.07 a barrel, still near their highest level since October 2018.

The US Energy Information Administration said on Wednesday that US crude oil stocks, which include strategic petroleum reserves, fell for the eleventh consecutive week as refineries boosted production, but fuel stocks rose sharply due to weak consumer demand.

Crude stocks, excluding strategic petroleum reserves, fell 5.2 million barrels in the week ending June 4 to 474 million barrels, the third consecutive weekly decline. But fuel stocks rose strongly.

In India, the world’s third-largest oil consumer, demand for fuel fell in May to its lowest level since August last year, as the second wave of Covid-19 cases disrupted transportation and reduced economic activity in the country.