(Bloomberg) -- Oil edged up in Asia, after breaking a five-day rising streak following a U.S. government report that saw focus return to the excess supply overhanging the market.
Futures in New York gained 1.5%, paring a decline of 2.3% on Wednesday. American gasoline consumption on a four-week basis rebounded at its strongest rate on record last week but remained far below the seasonal average, according to the Energy Information Administration. At the same time, crude stockpiles increased by 4.59 million barrels, and total petroleum inventories rose to the highest level ever, sustaining concerns about storage capacity.
In states that have loosened coronavirus lockdowns, fuel demand is picking up, with parts of Florida reporting gasoline consumption is down just 25-30%, from 50% previously. Refiner Delek U.S. Holdings Inc. said Wednesday it’s seeing demand improve in rural areas of Texas and Arkansas.
Most analysts don’t see demand rebounding to pre-virus levels for at least a year, with some questioning if that will ever happen. But despite concerns about oversupply, the discount on crude for June delivery relative to July, a structure known as contango, remains at its tightest in more than a month.
Saudi Aramco (SE:2222) delayed the release of its key monthly pricing for June crude exports for a second time, according to people with knowledge of the matter.
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