Oil continues to rise on US demand outlook

Oil drilling rigs

Oil prices edged up today, July 18, after official data showed US crude inventories fell more than expected last week—a sign of strong demand.

Brent crude was trading up 0.43% at $85.45 per barrel at 08:03 am Makkah time, after gaining 1.6%, or $1.35, in the last session.

West Texas Intermediate (WTI) crude rose 0.70% to $83.43 per barrel.

According to US Energy Information Administration data, US oil inventories fell by 4.9 million barrels last week, compared to the expected decline of 900,000 barrels.

The data helped ease investor concerns about weak Chinese economic growth, Priyanka Sachdeva, Senior Market Analyst at Phillip Nova, told Reuters.
 

"Hopes of a Fed easing, which can boost economic growth, and current summer travel in the US are ensuring enough traction in oil demand from the world's largest economy," Sachdeva said.