Brent futures held above $110 a barrel on Friday as a steep drawdown in U.S. gasoline stockpiles revived hopes of steady demand growth in the world’s top oil consumer, with geopolitical tensions over Ukraine providing additional support.
U.S. gasoline stocks fell 1.8 million barrels, data from the Energy Information Administration showed, compared with expectations of a 300,000-barrel gain, indicating a strong start to the summer driving season.
Investors still caution that oil may be prone to a correction following gains in the last few weeks on supply disruption concerns.
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