Oil gains as draw in US crude stocks reinforces outlook for robust demand
TOKYO (Reuters) – Oil prices gained for a second day on Thursday after a bigger-than-expected drawdown in US crude and gasoline stocks confirmed outlook for robust fuel demand and on doubts about the future of the 2015 Iran nuclear deal that could end US sanctions on Iranian crude exports.
Brent crude futures rose 8 cents, or 0.1%, to $75.27 a barrel by 0453 GMT, after increasing 0.5% on Wednesday.
U.S. West Texas Intermediate (WTI) crude futures climbed 9 cents, or 0.1%, to $73.17 a barrel, after rising 0.3% on Wednesday.
Both benchmarks hit their highest since October 2018 on Wednesday, but they pared gains later in the session as energy traders locked in profit after the U.S. inventory report, Edward Moya, senior market analyst at brokerage OANDA, said in a report. Prices resumed climbing in Asia trade on Thursday.
U.S. gasoline stocks (USOILG=ECI) fell by 2.9 million barrels in the week, against analysts' expectations for an 833,000-barrel rise.
"The data was encouraging since not only crude stocks, but also gasoline inventory dropped, suggesting healthy demand and tight supply," said Tetsu Emori, CEO of Emori Fund Management Inc.
"Unless OPEC+ decides next week to increase output more than expected for August and later, oil prices are expected to stay at the current high range for a while," he said.
Iran said on Wednesday the United States had agreed to remove all sanctions on Iran's oil and shipping but Washington said "nothing is agreed until everything is agreed" in talks to revive the 2015 Iran nuclear deal.