Oil rose for a third day amid signs of a pick-up in demand among US refiners.
Crude oil futures rose nearly 2 percent in New York on Wednesday after a government report showed so-called refinery utilization rose last week to the highest since late December. Prices advanced despite a surprise rise in domestic crude stockpiles to the highest level since June 2021.
“Demand looks pretty good,” said Bart Melek, head of commodities strategy at TD Securities.
Oil has been trading in a narrow band this year as investors watch for sustained signs of a resurgence in Chinese economic activity in the post-Covid era. Traders are also closely watching the fallout from new sanctions on Russian fuel and any impact on trade flows.
Diesel futures fell 0.4% after the Energy Information Administration report showed distillate fuel stockpiles rose to a one-year high. An unusually mild winter has limited heating oil demand and fuel switching at power plants.
Prices:
- WTI for March delivery settled up $1.33 at $78.47 a barrel in New York.
- Brent for April settlement closed up $1.40 at $85.09.
(with the assistance of Chunzi Xu and Julia Fanzeres)
