By Yuka Obayashi
TOKYO (Reuters) – Oil prices rose in early Asian trading on Wednesday after industry data showed a larger-than-expected draw in U.S. crude inventories, raising hopes for demand for solid fuels during the summer season in the country that is the largest consumer of oil.
Brent crude futures rose 16 cents, or 0.2%, to $85.60 a barrel by 0033 GMT. West Texas Intermediate crude oil futures rose 14 cents, or 0.2%, to $82.95 per barrel.
Both benchmarks closed lower on Tuesday as fears eased that Hurricane Beryl would disrupt production in the Gulf of Mexico.
US crude oil inventories fell by 9.163 million barrels in the week ending June 28, according to market sources citing data from the American Petroleum Institute on Tuesday. However, gasoline stocks increased by 2.468 million barrels and distillates fell by 740 thousand barrels.
Analysts in a Reuters poll had expected a 700,000 barrel draw in crude oil inventories, a 1.3 million barrel drop in gasoline inventories and a 1.2 million barrel drop in distillate inventories.
“Oil prices were supported by depleting U.S. crude inventories, but gains were limited as some investors were still looking to take profits from the recent rally to reach the highest levels since April,” said Mitsuru Muraishi, analyst at Fujitomi Securities.
The Energy Information Administration, the statistical arm of the US Department of Energy, is due to release its weekly data on Wednesday at 2:30 pm GMT.
U.S. gasoline demand is expected to increase as the summer travel season approaches, with the Independence Day holiday this week. The American Automobile Association predicts that travel during the holiday season will be 5.2% higher than in 2023, with car trips increasing 4.8%.
On the supply side, oil production from the Organization of the Petroleum Exporting Countries (OPEC) increased in June for the second consecutive month, a Reuters survey found on Tuesday, as higher supply from Nigeria and Iran offset the impact of voluntary supply cuts by other countries. members and the broader OPEC+ alliance.
Hurricane Beryl, which is crossing the Caribbean Sea, is expected to have weakened into a tropical storm by the time it enters the Gulf of Mexico later this week, according to the US National Hurricane Center.
(Reporting by Yuka Obayashi; Editing by Sonali Paul)
