New York June 8 2022: Oil prices rose about 3% to a 13-week high on Wednesday as U.S. demand for gasoline has kept rising despite record pump prices, on expectations China’s oil demand will rise and on supply concerns in several countries.
Brent futures rose $3.60, or 2.99%, to $124.17 a barrel by 13:23 p.m. EDT. U.S. West Texas Intermediate (WTI) crude rose $3.49, or 2.92%, to $122.90.
Brent and WTI were on track for their highest settlements since March 8, which were their highest since 2008.
U.S. commercial crude oil inventories rose unexpectedly last week, while crude in the Strategic Petroleum Reserve fell by a record amount as refiners’ inputs rose to their highest since January 2020, the Energy Information Administration said. U.S. gasoline stocks fell by a surprise 0.8 million barrels as demand for the fuel rose despite sky-high pump prices.
On the supply side, traders noted several countries could face problems boosting output.
In Norway, a number of oil workers plan to strike from June 12 over pay, putting some crude output at risk of shutdown.
Further pressuring the supply outlook, Iran removed two surveillance cameras of the International Atomic Energy Agency from one of its nuclear facilities, state television reported.
That move will probably raise tensions with the United Nations nuclear watchdog, the United States and other countries negotiating with Iran over its nuclear program, hoping for a deal analysts have said could lift sanctions and add 1 million bpd of crude to world supply.
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