23 Jun 2016
Investors also braced for market volatility as the US dollar fluctuated amid uncertainty over the UK's continued membership of the European Union.
US crude supplies fell by 917,000 barrels last week, according to the Energy Information Administration (EIA), undershooting expectations for a draw of 1.7 million barrels and only a third of the 5.2 million-barrel drop reported by the American Petroleum Institute (API).
Gasoline demand hit a record high last week, the EIA said. As the US driving season gets underway, demand for gasoline averaged 9.815 million barrels per day. US gasoline demand has risen by 4.1% year-on-year. A pick-up in demand should act as a sentiment boost for crude, as it could help to eat into the oversupply that has been weighing on the market.
Crude prices settled at $49.00 a barrel on Wednesday, down $1.20 from their previous close. The technical picture suggests crude could weaken in the short term, with immediate support seen around the 48.10 area, and resistance at 49.80.
(Source: Monexnews.com)
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