Crude oil storage tanks are seen in an aerial photograph at the Cushing oil hub in Cushing, Oklahoma, U.S. April 21, 2020.
Gasoline inventories fell by 1.7 million barrels, the API data showed, compared with estimates for a 1.3 million barrel drop.
Both are indicators of robust prompt fuel demand in the U.S."The seasonal peak demand period (for transportation fuels) and supply cuts by oil producing countries have caused oil prices to rise," said CMC Markets analyst Leon Li.
Oil prices may continue to rise, but they may not exceed $90 a barrel given recessionary pressures in some regions such as Europe, said Li.
Furthermore, after the summer demand peak passes, "oil prices have entered the end of this round of upward trend", he said.
Persons:
Leon Li, Li, Philip Jones, Arathy Somasekhar, Trixie Yap, Christian Schmollinger
Organizations:
REUTERS, Brent, West Texas, American Petroleum Institute, Organization of, Petroleum, Sparta Commodities, Lux, Thomson
Locations:
Cushing , Oklahoma, U.S, China, SINGAPORE, Saudi Arabia, Europe, Sparta, Houston, Singapore