Oil keeps bid tone in Asia as US inventories continue to slide

The bid tone around oil remained intact in Asia following yesterday’s strong closing on the back of a bullish US weekly oil inventory data.

9th weekly drawdown

The Energy Information Administration (EIA) data released in the US showed inventories declined 2.3 million barrels in the week to July 15. This was the 9th weekly drop in the inventories, which highlights the ongoing rebalancing in the oil markets.

However, experts believe the data is not as bullish as the headline number suggests as gasoline build continues to rise. Nevertheless, drop in oil inventories pushed up prices by 1% on Wednesday and is keeping the bid tone around oil intact.

At the time of writing, WTI oil was up 0.15% at $45.82/barrel. Brent was up 0.28% at $47.30/barrel.