West Texas Intermediate headed for its third weekly advance as declining U.S. crude stockpiles signaled rising fuel demand in the world’s biggest oil consumer. Brent was steady in London.
Futures were little changed in New York, poised for the longest run of weekly gains since February. Crude inventories shrank by 7.23 million barrels last week, the most in four months, data from the Energy Information Administration showed on May 21. Fighting flared ahead of a May 25 presidential election in Ukraine as Prime Minister Arseniy Yatsenyuk said Russia’s pledges to pull troops from the border “are a bluff.”
“The inventory draw is the key factor for oil this week,” Michael McCarthy, a chief strategist at CMC Markets in Sydney, said by phone today. “There’s an anticipation of further increased demand as we head into the driving season” during summer in the U.S., he said.
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