Oil edges up on strong U.S. fuel demand; weak economic data cap gains

NEW YORK: Oil prices rose on Wednesday on strong U.S. demand for fuel, but weaker economic data from top oil importers limited the gains.

Brent crude futures were up 16 cents, or 0.25%, at $64.6 a barrel by 11:07 p.m. ET (1607 GMT). U.S. West Texas Intermediate crude was 17 cents, or 0.28%, lower at $60.73.

Oil prices were supported by U.S. government data that showed better-than-expected gasoline demand in the country.

“Implied demand for both gasoline and diesel held up versus last week, combining with low refining activity to encourage draws,” said Kpler lead Americas oil analyst Matt Smith.

U.S. gasoline inventories fell by 4.7 million barrels last week to 206 million barrels, the Energy Information Administration said on Wednesday. Analysts had expected 1.1 million-barrel draw in gasoline stocks.

Distillate inventories, which include diesel and heating oil, also fell last week by 0.6 million barrels, although the draw was smaller than expectations for a 2 million-barrel drop.

However, weaker economic data from China and the U.S. suppressed prices.

China’s factory activity shrank for a seventh month in October, while U.S. manufacturing contracted for an eighth straight month in October.

On the supply side, Russia’s Black Sea port of Tuapse has suspended fuel exports, while its oil refinery halted crude processing after Sunday’s Ukrainian drone attacks on its infrastructure, according to two industry sources and LSEG ship tracking data.

Kazakhstan’s crude oil production, excluding gas condensate, declined 10% last month to 1.69 million barrels per day, still above the OPEC+ output quota, according to an industry source and Reuters calculations.

The Organization of the Petroleum Exporting Countries and allied producers, a group known as OPEC+, agreed on Sunday to increase output by 137,000 barrels a day in December. It decided to pause further increases in the first quarter of 2026.