On Tuesday, oil futures advanced 0.4% amid the forecasts of reducing US gas & crude inventory, supporting the signs of demand recovery in China and the US. Oil followed the footsteps of US equities, which is also on an uptrend.
Meanwhile, the private factory output China rose at the fastest rate since January 2011, adding further support to US manufacturing which recorded an expansion at the quickest rate since 2018. Besides, the US administration is about to post its supply numbers on Wednesday.
Rates grew in the after-market trading sessions after the American Petroleum Institute reported US crude stockpiles to fall more than 6 million BPD previous week, with distillate and gasoline supply also decreasing.
US WTI (West Texas Index) future advanced for the fourth month straight in August as OPEC+ (Organisation for Petroleum Exporting Countries) nations commit to reducing the oil output to balance the demand-supply structure, with US stockpiles declining continuously. However, the gasoline inventory is still at a decade-high level because of travel restrictions due to coronavirus pandemic.