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Bloomberg
Oil climbed to its highest level in more than two weeks as strong summer demand in the US continued to drain stockpiles.
Futures rose as much as 1.3% after the Energy Information Administration reported American crude inventories fell by 8.5 million barrels last week, a seventh straight decline that was higher than all industry and analyst estimates. Stockpiles of gasoline and distillate fuels also shrank, helping ease concerns about slowing consumption.
Still, oil surrendered some of its gains after an initial burst following the EIA data.
Prices are ending in July little changed, after a volatile month in which growth concerns competed with simmering Middle East tensions that risk disrupting global supplies. US and Chinese negotiators plan to meet again in early September, as the latest round of talks to resolve a trade dispute ended with signs that the top two economies discussed the Asian nation’s purchases of American farm products.
“The EIA report in and of itself was constructive, but these factors outside the market are weighing prices down,†said Andy Lipow, president of Lipow Oil Associates LLC in Houston.