SINGAPORE- Oil prices rebounded on Thursday after falling in the previous session as US crude and gasoline inventory declines supported the market after signs the US Federal Reserve may keep rates higher for longer crimped the outlook for future fuel demand.
Brent crude oil futures contract for May settlement rose 0.6 percent , or 52 cents, at $86.47 a barrel, after falling 1.6 percent on Wednesday.
US West Texas Intermediate futures for May delivery rose 0.5 percent , or 45 cents, to $81.72 a barrel, after falling 1.6 percent in the previous session. The April contract expired on Wednesday down 2.1 percent at $81.68.
Crude inventories in the US the world’s biggest oil consumer, fell for a second week, the US Energy Information Administration (EIA) reported on Wednesday. Stockpiles declined unexpectedly by 2 million barrels to 445 million barrels in the week ended March 15, versus analysts’ expectations in a Reuters poll for a 13,000-barrel rise.
The stockpiles fell as exports rose and refiners continued to increase activity. Gasoline inventories fell for a seventh week, down by 3.3 million barrels to 230.8 million, and suggesting steadily strong fuel demand.
Oil refinery runs ramped up by 127,000 barrels per day and utilization rates rose.
