West Texas Intermediate crude gained for a third day as the U.S. economy expanded more than previously forecast in the second quarter, boosting expectations for strong oil demand.
U.S. gross domestic product grew at a 4.2 percent annualized rate last quarter, up from an initial estimate of 4 percent, the Commerce Department said. Demand for gasoline rose 3.7 percent last week, the Energy Information Administration said yesterday. BP Plc’s Whiting refinery in Indiana had a fire at a hydrotreater yesterday that may limit the plant’s ability to process high-sulfur heavy crude, according to IIR Energy.
“The downside from current price levels is quite limited,” said Paul Crovo, a Philadelphia-based oil analyst at PNC Capital Advisors. “Supply, demand conditions continue to remain relatively tight going into the second half of this year.”