Oil prices rose on Wednesday after industry data showed a draw in crude oil inventories, raising hopes for improving U.S. fuel demand ahead of the summer driving season.

Brent crude futures for Aug settlement rose 0.2 percent to $68.63 per barrel, while U.S. crude futures for July delivery were up 0.1 percent at $66.14.

The upside remained capped by worries that a possible return of Iranian supply could cause a glut. Talks between Iran and world powers will continue in Vienna this week to resolve outstanding issues on a nuclear accord.

The American Petroleum Institute (API) on Tuesday reported a draw in crude oil inventories of 439,000 barrels for the week ended May 21, compared with a build of 620,000 million barrels reported for the previous week. Analysts had predicted a draw of 1.050 million barrels for the week.

Gasoline inventories fell by about 1.99 million last week, while distillate stocks slipped by about 5.14 million barrels, the API said.

The official government inventory report from the U.S. Energy Information Administration will be released later in the day.

The material has been provided by InstaForex Company – www.instaforex.com


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