Oil prices rose Wednesday on expectations of rising demand as the U.S. dollar weakened and as a report showed U.S. crude and gasoline stockpiles fell and the release of inflation data could signal a more supportive economic outlook.
Brent crude futures were up 51 cents, or 0.6%, at $82.89 a barrel at 0630 GMT. WTI crude oil futures rose 55 cents, or 0.7%, to $78.57 a barrel.
US crude oil inventories fell by 3.104 million barrels in the week ending May 10, according to figures from the American Petroleum Institute (API) on Tuesday. Gasoline stocks fell by 1.269 million barrels, while distillate stocks increased by 673,000 barrels.
U.S. government inventory data will be released later Wednesday and is likely to see a decline in crude inventories as refineries ramp up efforts to meet rising fuel demand during the peak summer driving season.
The expectation of a new decline in US oil stocks supports oil prices.
U.S. consumer price index (CPI) data will also be released on Wednesday, providing a clearer indication of whether the Federal Reserve will cut interest rates later this year, which could stimulate the economy and increase demand.
Prices also found support from the weak US dollar and China’s stimulus measures. The weaker dollar makes dollar-denominated oil cheaper for investors holding other currencies.
China, the world’s largest oil importer, plans to raise 1 trillion yuan ($138.39 billion) in long-term private treasury bonds this week to raise funds to revive key sectors of its flagging economy.
US CPI and Chinese economic data will play a key role in pushing oil prices higher for the rest of the week.
Prices were also supported by concerns caused by wildfires over supply of Canadian oil, a major exporter to the United States.
