Oil prices rose on Thursday, boosted by a strong outlook for demand in the United States after fuel inventories fell more than expected, and a weaker U.S. dollar.
Brent crude futures rose 43 cents, or 0.6%, to stand at $71.21 a barrel by 0423 GMT, their highest level since March 3. U.S. West Texas Intermediate crude (WTI) gained 38 cents, or 0.6%, to $67.54.
U.S. government data showed a higher-than-expected drawdown last week in distillate inventories, including diesel and heating oil, which fell by 2.8 million barrels, outstripping a drop of 300,000 barrels expected in a Reuters poll.
“U.S. oil demand outlook remains healthy despite lower air travel passenger volumes,” JP Morgan analysts said in a note, adding that reduced U.S. travel activity did not signal broader weakness in demand outlook.
Global oil demand averaged 101.8 million barrels per day (bpd), an annual increase of 1.5 million bpd, the analysts said.
