(Updates with market action and settlement prices)
By Barani Krishnan and Liz Moyer
Investing.com -- Oil prices edged higher Wednesday after data showing strong drawdowns in both U.S. crude and stockpiles ahead of the long weekend that officially kicks off the country’s peak summer driving season.
West Texas Intermediate crude for July delivery, the benchmark for U.S. oil, settled up 14 cents, or 0.2%, at $66.21. WTI rose 3.9% in the previous session as investors bet on a spike in fuel demand ahead of the three-day break leading to Monday’s Memorial Day holiday.
Brent crude for July delivery, which acts as the global benchmark for oil, settled up 36 cents, or 0.5%, at $68.73. Brent gained 2.9% in the previous session.
U.S. oil stockpiles declined more than expected in the latest week, the Energy Information Administration said on Wednesday.
Crude oil inventories fell 1.662 million barrels last week, compared with analysts' expectations for a draw of 1.05 million barrels.
Gasoline inventories fell 1.745 million barrels last week the EIA said, compared with expectations for a draw of 614,000 barrels.
Distillate stockpiles, which include diesel and heating oil, fell 3.013 million barrels in the week against expectations for a draw of 1.9 million barrels, the EIA data showed.
Refinery crude runs were 123,000 barrels. The weekly refinery utilization rate rose 0.7%, according to the EIA report.
The American Automobile Association expects as many as 37 million road travelers on this Memorial Day, up 60% from last year’s pandemic-suppressed 23 million travelers.
Americans who take the road this weekend are expected to fill their tanks at least more than once for trips stretching over the three-day break.