WASHINGTON (dpa-AFX) - Crude oil prices moved higher on Wednesday as an EIA report indicated a draw in crude oil inventories and a surge in US gasoline demand to a three-and-a-half-year high.
WTI Crude Oil contract for August delivery closed up by $0.55 to settle at $64.92 per barrel.
August Brent Crude was last seen trading, up by $0.66 to $67.80.
The 12-day war between Israel and Iran which began on June 12th came to an end yesterday after US President Donald Trump stated that both countries have agreed for a ceasefire. Trump also gave a go-ahead for Iran to continue supplying crude oil to China.
Today, Trump stated that the ceasefire is 'going very well'.
With the truce holding, fears of disruption to the Strait of Hormuz in the Persian Gulf through which around 20% of the global oil shipments pass through, stands abated.
Though supply chain concerns have been allayed, oil traders are watching the developments between Israel-Iran relations.
The Energy Information Administration stated today that US crude, gasoline, and distillate inventories fell for the week ending June 20. The report stated that crude inventories fell by 5.8 million barrels to 415.1 million barrels.
The American Automobile Association has projected that 61.6 million people will travel this Fourth of July Holiday season (June 28 to July 6), up 2.2% from last year suggesting strong gasoline demand.
Oil prices rose to five-month highs after the US attacked Iran's nuclear facilities over the last weekend but notably, the 12-day war did not cause any significant damage to the supply or demand side of oil and energy.
Analysts are focused on the US Fed Chair's plans on interest rates as lower rates could ignite economic activity and spur oil demand.
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