Asia saw the barrel of oil going to $90 for the first time since May, after the US government announced the oil demand is on the rise.
Benchmark crude increased 93 cents to $90.80 a barrel this afternoon Bangkok time in electronic trading on the New York Mercantile Exchange. On Wednesday, July 18th, the contract increased 65 cents to settle at $89.87 per barrel in New York. On the ICE futures exchange in London brent crude increased 76 cents at $105.92 a barrel.
The Energy Information Administration announced that average oil demand increased in the US last week for the third week in a row. Compared to last year, oil demand decreased most of the year, due to the fact that drivers cut back on travel and the manufacturing activity slowed. Last week EIA’s weekly petroleum report showed an unexpected drop in gasoline supplies due to refineries that pulled back on production. Oil supplies dropped as well, but the decrease was less than what analysts expected.
The Schork Group said oil is expected to remain at $90 in the near term thank to signs of improving demand in the EIA report.