DTN Oil Update
Oil Prices Edge Higher as US Oil Inventories Shrink
VIENNA (DTN) -- Oil futures rose Thursday morning, supported by a weekly U.S. government inventory report showing oil and product stocks declining, with commercial crude oil inventories falling for a fifth straight week to an 11-year seasonal low.
NYMEX-traded WTI for August rose $0.32 barrel (bbl) to trade near $65.24 bbl, and ICE Brent for August delivery gained $0.24 bbl to $67.92 bbl.
July RBOB gasoline futures added $0.0124 to $2.0948 gallon, and the front-month ULSD futures contract advanced $0.0417 to trade near $2.3381 gallon.
The U.S. Dollar Index softened 0.293 points to a 3-year low 96.980.
The U.S. Energy Information Administration on Wednesday confirmed the large draw to domestic crude oil inventories reported by the American Petroleum Institute Tuesday. According to EIA data, commercial inventories shrank by 5.8 million bbls in the week ended June 20, more than 1 million bbls above API's estimate, and beating analyst expectations of a 600,000-bbl decline. Gasoline and diesel stocks also fell sharply last week, stoking bullish sentiment.
Oil futures have shed the geopolitical risk premium tied to the Israel-Iran war which sent prices rocketing over the past two weeks as both countries have so far largely adhered to the ceasefire. The White House reaffirming its continued commitment to sanctions on Iranian energy trade also supported prices.
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