Crude-oil futures on Wednesday bounced back from two-month lows, adding to gains after a government supply report showed a larger-than-expected drop in inventories.
U.S. crude-oil inventories fell by 7.5 million barrels in the week ended July 11, the Energy Information Administration said Wednesday. Analysts polled by Platts had expected a decline of 3 million barrels.
The EIA also said that gasoline stockpiles rose by 200,000 barrels, and distillate inventories, which include heating oil, increased by 2.5 million barrels. The analysts surveyed by Platts had expected gasoline inventories to increase 1.2 million barrels, and distillates stocks to increase two million barrels.
Light, sweet crude futures for August delivery rose $1.31, or 1.3%, to $101.30 U.S. a barrel on the New York Mercantile Exchange after ending Tuesday at their lowest price since early May.
August Brent crude, which trades on London’s ICE Futures exchange, advanced 16 cents to $106.19 U.S. a barrel. The August contract for Brent crude is set to expire Wednesday.
Futures got a boost earlier Wednesday from positive macroeconomic data from China showing that the Chinese economy grew 7.5% in the second quarter. That beat forecasts of 7.4% growth and a 7.4% expansion in the first quarter. China is the world’s top importer of oil.
