The crude oil contract closes at its highest level in 13 weeks on Wednesday (June 8) after gasoline inventories fell more than expected. This indicates that the demand for fuel in the United States is still increasing. In addition, prices are supported by the easing measures in China.
- WTI crude oil contract increased by $2.70 or 2.3%. Closed at $122.11 per barrel.
- BRENT crude oil contract increased by $3.01 or 2.5%. Closed at $123.58 per barrel.
The crude oil contract is rising after the U.S. Energy Information Administration (EIA) announced that gasoline inventories were drawn down by more than 800,000 barrels last week.
This information shows that demand for fuel in the United States continues to rise. The price of gasoline at the pump is also rising sharply. According to the American Automobile Association (AAA), the price of gasoline was $4.955 per gallon on Wednesday.
Demand in China is also expected to increase again after the COVID-19 measures were relaxed. This mainly affects large cities such as Shanghai and Beijing.
Investors still have their eye on the nuclear agreement with Iran. If the deal goes through, Iran will put oil back on the market. So far, Iran has produced an average of 2.4 million barrels of oil per day in 2021 and is expected to produce 3.8 million barrels per day when sanctions are lifted.
The Spot Market is Open
Thursday, June 9, 2022