Oil prices rose for a second day on Thursday on expectations that demand will increase in the United States, the world’s largest oil consumer, as refineries try to return to service after shutdowns and the dollar’s weakening.
Brent crude futures rose 17 cents, or 0.2%, to $83.20 a barrel at 05:10 GMT. WTI crude oil futures in April rose 19 cents, or 0.2%, to $78.10 a barrel. Oil prices rose 1 percent on Wednesday.
Resilient oil prices appear poised to retest their year-to-date high after rising in February, fueled by geopolitical tensions.
However, it is conceivable that gains will remain somewhat limited for now, as the higher-than-expected stocks in US crude stocks based on the API figure need to be confirmed by the EIA figures.
Market sources said crude oil stocks increased by 7.17 million barrels in the week ending February 16, according to data released by the American Petroleum Institute on Wednesday. While distillate fuel stocks fell, gasoline stocks also increased.
U.S. crude oil inventories have increased due to the power outages, and outages caused by severe weather conditions that have kept utilization rates at major refineries at their lowest level in two years, but facilities are returning to production.
BP’s 435,000 barrel per day (bpd) refinery in Indiana, the largest in the U.S. Midwest, will return to full production in March after a Feb. 1 power outage, according to people familiar with the plant’s operations.
Total Energies’ 238,000-barrel-per-day refinery in Port Arthur, Texas, is also preparing to restart but is still operating at minimal levels following a weather-related power outage.
Analysts expect U.S. refinery operating rates to rise from 80.6% of total capacity the week before to 81.5% last week.
Investors will be watching for official inventory data from the US Energy Information Administration, due to be released at 16:00 GMT on Thursday, which was delayed by a day due to the US holiday.
Crude oil was also supported by the weak US dollar, making oil cheaper for traders holding other currencies.
