Oil Rebounds as Strong U.S. Fuel Demand Quells Economic Worries - Bloomberg

Oil Rebounds as Strong U.S. Fuel Demand Quells Economic Worries - Bloomberg:

Oil rebounded Wednesday after a report showed surprisingly strong gasoline demand and a drawdown of heating fuels in the U.S., tempering fears of a global oversupply.

Futures in New York closed 0.7 percent higher, snapping a two-day losing streak. While the Energy Information Administration said domestic crude and gasoline inventories rose last week, both trailed analyst estimates. The fallout from the brutal cold that hit the U.S. also showed up in the data, with stocks of winter fuels shrinking by almost 5 million barrels combined.

The bullish hints on demand offered relief to traders jittery about economic growth. Despite OPEC’s efforts to cut global supplies, crude was on track for a third straight loss earlier in the session as slowing factory activity in Germany built upon reports of declining service-sector orders in the U.S.