Drop in inventory lifts crude oil; upside restricted

Benchmark crude oil futures for August delivery gained 0.87% to $ $51.86/ barrel from the close of 51.41/$ on July 15 in electronic trading on the New York Mercantile Exchange.

Crude oil futures were holding up on Thursday after data showed drop in US crude inventory and higher refinery demand. Data from Energy Information Administration (EIA) showed that US crude inventories fell 4.3 million barrels last week as refineries boosted throughput to a record level. However, gains were capped on prevailing fears of Iranian oil  soon hitting the global markets after securing the required sanctions s part of the historic deal reached to regulate the country’s nuclear program.

Benchmark crude oil futures for August delivery gained 0.87% to $ $51.86/ barrel from the close of 51.41/$ on July 15 in electronic trading on the New York Mercantile Exchange. In London, Brent crude for August settlement gained 0.13% at $57.47 a barrel on the ICE. Brent closed at 57.39/$ on Wednesday.