Wednesday 25 May 2022

Oil edges higher on tight supply, rising U.S. refining activity | Reuters

Oil edges higher on tight supply, rising U.S. refining activity | Reuters

Oil prices rose slightly on Wednesday, buoyed by tight supplies and as U.S. refiners drove processing activity to their highest level since before the coronavirus pandemic started.

Brent crude futures for July rose by 9 cents to $113.65 a barrel by 12:26 p.m. EDT (1626 GMT). U.S. West Texas Intermediate (WTI) crude for July delivery rose 17 cents to $109.94 a barrel.

U.S. crude stockpiles fell 1 million barrels last week, the government said, with gasoline inventories also sliding modestly. Distillate stocks rose by 1.7 million barrels. Refiners picked up the pace of processing, boosting capacity use to 93.2%, its highest since December 2019.

"Refiners are going to continue to burn the crude as much as they can," said Phil Flynn, senior analyst at Price Futures Group. "The market should be concerned going into this holiday weekend because gasoline supplies are still very tight."

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