Oil prices rose in early Asian trading hours on Friday, buoyed by signs of strong summer demand and easing inflationary pressures in the United States, the world’s largest oil market.
Brent crude futures increased by 37 cents, or 0.4%, to $85.77 a barrel by 0031 GMT. Similarly, U.S. West Texas Intermediate (WTI) crude futures climbed 50 cents, or 0.6%, to $83.12 a barrel.
Despite gains in the past two sessions, Brent futures were on track to decline about 1% week-over-week after four consecutive weeks of gains. WTI futures remained virtually unchanged on a weekly basis.
U.S. gasoline demand surged to 9.4 million barrels per day (bpd) in the week ending July 5, the highest level for the Independence Day holiday week since 2019, according to government data released on Wednesday. Jet fuel demand, based on a four-week average, reached its highest point since January 2020.
The strong fuel demand has prompted U.S. refiners to increase activity and draw from crude oil stockpiles, supporting prices. Government data revealed that U.S. Gulf Coast refiners’ net input of crude rose last week to over 9.4 million bpd, the highest since January 2019.
WTI front-month futures showed their steepest premium to the next-month contract since April, indicating near-term supply tightness.
Adding to the positive sentiment, U.S. government data released on Thursday showed an unexpected decline in consumer prices in June, raising hopes that the Federal Reserve may soon cut interest rates.
