Oil Rises With Shrinking U.S. Stockpiles Signaling Demand Pickup
- U.S. crude stockpiles declined for third straight week
- WTI closed above key technical level first time since January
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Oil closed above a key technical level buoyed by U.S. energy data that suggest a much-awaited recovery in demand is underway as the summer driving season nears an end.
Futures in New York rose 2.5% to the highest level in five months, settling above its 200-day moving average for the first time since January. Domestic crude supplies declined over 4 million barrels last week and refineries ratcheted up rates above 80% for the first time since March when the coronavirus pandemic led to widespread lockdowns, according to an Energy Information Administration report. Gasoline and distillate inventories also decreased.