Crude oil prices held near a five-month high after U.S. government data showed the biggest decline in gasoline stockpiles since 2017, offsetting an increase in crude inventories.
Futures in New York rose as much as 0.9% on Wednesday, while gasoline futures jumped as much as 2.6%. Domestic fuel stockpiles tumbled more than analysts expected, while crude supplies expanded for a third straight week, according to the Energy Information Administration.
“It seems like this is more of a gasoline story,” said Rob Thummel, managing director at Tortoise, which handles $16 billion in energy-related assets. We’re “continuing to see healthy declines in gasoline inventories, which ultimately bodes well for crude, because there will be demand for crude as well.”