Implied gasoline demand fell to 8.48 million bpd in the week to June 4, down from 9.15 million bpd from the week before, but up from 7.9 million bpd a year ago, EIA data showed.
On the daily chart, the break above a resistance at $70.75 turned out to be invalid. The contact could be pulling back towards the uptrend trendline of a wedge.
Oil prices also extended gains, fuelled by growing optimism that the reopenings and vaccine rollouts will lead to a surge in activity over the coming months and ramp up demand.
Recent remarks from Fed policymakers have suggested that a discussion on tapering bond-buying was underway, with the upcoming policy meeting in mid-June possibly providing more clarity.
A fall from the current level may be limited to the support zone of $68.78-$69.20. On the daily chart, oil is poised to break a resistance at $70.75 and rise to $73.50.
On the daily chart, the consolidation from the March 8 high of $71.38 is being shaped into a wedge which looks like a bullish continuation pattern, to be followed by a rally.
On the daily chart, the consolidation from the March 8 high of $71.38 is being shaped into a triangle which may be confirmed as a bullish continuation pattern, to be followed by a round of rally.
The contract has broken a support at $62.13. The next support will be at $60.98, around which a bounce may occur, as this support will be stronger than the one at $62.13.
As far as the longer-term outlook is concerned, oil looks neutral in a range of $66.29-$70.75, within which the consolidation has lasted for two weeks.
"Some expectations that negotiations between Iran and the United States may lead to a resumption of Iranian oil exports is limiting the upside of oil prices," said Hiroyuki Kikukawa, general manager of research at Nissan Securities.