Oil Prices Edge Higher as US Oil Inventories Shrink


   
Karim Bastati
DTN Analyst

   VIENNA (DTN) -- Oil futures rose Thursday morning, supported by a weekly 
U.S. government inventory report showing oil and product stocks declining, with 
commercial crude oil inventories falling for a fifth straight week to an 
11-year seasonal low.

   NYMEX-traded WTI for August rose $0.32 bbl to trade near $65.24 bbl, and ICE 
Brent for August delivery gained $0.24 bbl to $67.92 bbl.

   July RBOB gasoline futures added $0.0124 to $2.0948 gallon, and the 
front-month ULSD futures contract advanced $0.0417 to trade near $2.3381 gallon.

   The U.S. dollar index softened 0.293 points to a three-year low 96.980.

   The U.S. Energy Information Administration on Wednesday confirmed the large 
draw to domestic crude oil inventories reported by the American Petroleum 
Institute Tuesday. According to EIA data, commercial inventories shrank by 5.8 
million bbls in the week ending June 20, more than 1 million bbls above API's 
estimate, and beating analyst expectations of a 600,000 bbl decline. Gasoline 
and Diesel stocks also fell sharply last week, stoking bullish sentiment.

   Oil futures have shed the geopolitical risk premium tied to the Israel-Iran 
war which sent prices rocketing over the past two weeks as both countries have 
so far largely adhered to the ceasefire. The White House reaffirming its 
continued commitment to sanctions on Iranian energy trade also supported prices.




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