West Texas Intermediate futures traded above $122 a barrel after settling 2.3% higher on Wednesday. Crude supplies at the Cushing hub sunk to the least since early March, while gasoline inventories are at the lowest seasonal level in eight years, according to Energy Information Administration data.
“Gasoline inventories are more in line with levels that we usually see at the end of the driving season and obviously we still have the whole summer ahead of us,” said Warren Patterson, the head of commodities strategy at ING Groep NV. “We expect that the refined products market will see even further tightening over the coming months, which will be bullish for crude prices.”
China is cautiously emerging from strict virus curbs, although Shanghai will lock down a district on Saturday for mass testing, highlighting the uncertain outlook. China National Petroleum Corp., the country’s biggest oil and gas producer, predicted oil demand growth next quarter but warned of possible further disruptions this year due to more outbreaks.
Source: News Formal (newsformal.com)