Oil held a gain as an industry report showed shrinking US crude stockpiles and traders tracked progress toward fresh sanctions against Iran.
West Texas Intermediate traded above $83 a barrel after the June contract climbed 1.8% on Tuesday, while Brent closed above $88. The American Petroleum Institute reported US nationwide crude inventories declined by 3.2 million barrels last week, with a drawdown also seen for gasoline. Crude stockpiles at the Cushing, Oklahoma, hub were also seen shrinking.
The US House of Representatives, meanwhile, passed tougher measures against Iran in response to an attack on Israel, with the Senate set to rectify them. While some Asian refiners are bracing for added scrutiny, the move isn’t expected to have a significant impact.
Crude has climbed this year, lifted by supply cutbacks from OPEC+, as well as geopolitical risks in the Middle East and Russia. Traders are also weighing the outlook for US monetary policy, with slower US business activity growth being interpreted as bullish as it feeds into expectations for lower interest rates. Data on the Federal Reserve’s preferred inflation gauge is due later this week. – Bloomberg
