Crude oil prices rose above $72 today, supported by gains in Asian and European equity markets and after the previous day's US official oil data showed some increase in fuel demand.
Market focus will shift later today to preliminary first-quarter Gross Domestic Product figures from the United States, the world's largest economy and top energy consumer, for continued evidence of recovery.
US crude futures for July rose $1.12 to $72.63 a barrel. ICE Brent crude futures gained 73 cents to $72.47.
Yesterday US crude jumped 4 per cent, its biggest one day percentage gain in over three months after data from the Energy Information Administration showed an increases in US demand for refined oil products such as gasoline and diesel.
US crude rose to a premium to ICE Brent crude for the first time since mid-April. It fell to a discount as deep as $6.57 in mid-May due to a build-up in inventories at storage in Cushing, Oklahoma.
But crude was helped higher after yesterday's data showed inventories at Cushing, the physical delivery point of US crude, fell from record high levels.
Barclays Capital analyst Paul Horsnell noted the rise in US diesel demand in the weekly report. As diesel is used for large trucks, its demand is often used as a gauge of the health of economic activity.
US GDP data for the first quarter will be released at 12.30pm. Analysts forecast 3.4 per cent growth.
Asian and European shares rose today mainly because China denied a report it was reviewing its investments in euro zone debt.
Reuters