Oil extends the rebound in Asia on tightening fuel market

Oil prices on both sides of the Atlantic are seen building onto yesterday’s recovery mode, and now keep moderate gains, as the sentiment remains underpinned by a tighter US fuel market.

Oil awaits US retail sales and rigs count data

Currently, both crude benchmarks stay lifted, with Brent up +0.27% at $ 52.17, while WTI advances +0.67% to 50.78. Oil prices extend its bullish momentum into a second-day today as traders cite falling US fuel stockpiles as a key catalyst behind yesterday’s rebound, shrugging-off a bigger-than expected build in the US crude inventories.

The EIA report released Thursday showed, the US crude stocks rose for the first time in six weeks, rising by 4.9 million barrels last week to 474 million barrels. Although reports of a drop of 3.7 million barrels for distillates and a 1.9-million barrel decline for gasoline, indicated a tightening US fuel market.

However, it remains to be seen whether oil prices sustain the upside in the day ahead, as markets continue to weigh the latest OPEC and Russia’s informal talks on output cut.

Next on tap for the black gold remains the US rigs count data due later in the American session for fresh incentives on the oil-price action.