Beautiful Virgin Islands

Tuesday, Jun 03, 2025

0:00
0:00

Oil jumps to 13-week high on rising U.S. gasoline demand

Oil prices jumped over 2% to a 13-week high on Wednesday as U.S. demand for gasoline keeps rising despite record pump prices, while expectations that China's oil demand will increase faced growing supply concerns in several countries, including Iran.
Iran said it was removing two International Atomic Energy Agency surveillance cameras at a uranium enrichment facility as the board of the United Nations' nuclear watchdog passed a resolution criticizing Iran for failing to fully explain uranium traces at undeclared sites.

The move has raised tensions with the United States and other countries negotiating with Iran over its nuclear program, and will likely keep sanctions in place and Iranian oil out of the global market for longer.

Analysts have said a nuclear deal with Iran could add about 1 million barrels per day (bpd) of crude to world supply.

Brent futures rose $3.01, or 2.5%, to settle at $123.58 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $2.70, or 2.3%, to end at $122.11.

Those were the highest closes for both Brent and WTI since March 8, which were their highest settlements since 2008.

U.S. commercial crude oil inventories rose unexpectedly last week, while crude in the Strategic Petroleum Reserve (SPR) fell by a record amount as refiners' inputs rose to their highest since January 2020, the Energy Information Administration said.

U.S. gasoline stocks fell by a surprise 800,000 barrels as demand for the fuel rose despite sky-high pump prices. Analysts polled by Reuters had expected gasoline stocks to rise 1.1 million barrels. ,

"The gasoline draw is a highlight of the report with a tight market place across the U.S.," said Tony Headrick, energy market analyst at CHS Hedging, noting demand remained strong even with pump prices above $5 per gallon in many parts of the country.

Auto club AAA said national average retail regular unleaded gasoline prices hit a record $4.955 per gallon on Wednesday.

China's major A-share indexes and Hong Kong's Hang Seng finished trade at two-month closing highs. Oil traders expect fuel demand to recover as lockdowns to fight the pandemic are eased in the world's biggest oil importer.

"With demand recovering as much as 1.0 million bpd in China and rising seasonally in the U.S., even record SPR withdrawals may prove insufficient to ... balance a significantly undersupplied market," analysts at EBW Analytics said in a note.

The International Energy Agency warned that Europe, which has sanctioned Russia following its invasion of Ukraine, could face energy shortages next winter.

On the supply side, traders noted several countries could face problems boosting output.

In Norway, a number of oil workers plan to strike from June 12 over pay, putting some crude output at risk of shutdown.

Efforts by the Organization of the Petroleum Exporting Countries and their allies, including Russia, a group known as OPEC+, to boost output are "not encouraging", United Arab Emirates' Energy Minister Suhail al-Mazrouei said, noting the group was currently 2.6 million bpd short of its target.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
China Accuses US of Violating Trade Truce
Panama Port Owner Balances US-China Pressures
France Implements Nationwide Outdoor Smoking Ban to Protect Children
German Chancellor Merz Keeps Putin Guessing on Missile Strategy
Mandelson Criticizes UK's 'Fetish' for Abandoning EU Regulations
British Fishing Boat Owner Fined €30,000 by French Authorities
Dutch government falls as far-right leader Wilders quits coalition
Harvard Urges US to Unfreeze Funds for Public Health Research
Businessman Mauled by Lion at Luxury Namibian Lodge
Researchers Consider New Destinations Beyond the U.S.
53-Year-Old Doctor Claims Biological Age of 23
Trump Struggles to Secure Trade Deals With China and Europe
Russia to Return 6,000 Corpses Under Ukraine Prisoner Swap Deal
Microsoft Lays Off Hundreds More Amid Restructuring
Harvey Weinstein’s Publicist Embraces Notoriety
Macron and Meloni Seek Unity Despite Tensions
Trump Administration Accused of Obstructing Deportation Cases
Newark Mayor Sues Over Arrest at Immigration Facility
Center-Left Candidate Projected to Win South Korean Presidency
Trump’s Tariffs Predicted to Stall Global Economic Growth
South Korea’s President-Elect Expected to Take Softer Line on Trump and North Korea
Trump’s China Strategy Remains a Geopolitical Puzzle
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
×