Crude oil futures rebounded from their recent lows amid good bargain buying as recovery in equity markets and strong US economic data helped sentiments. Activity in the US service sector grew at a faster than expected rate in the month of May, according to a report released by the Institute for Supply Management on Tuesday. The ISM said its non-manufacturing index climbed to 58.6 in May from 56.8 in April. US and European stocks advanced, adding to their recent gains. Commodity linked shares also witnessed some gains. WTI Crude futures are currently trading at $ 65.81 per barrel, up 0.44% on the day. MCX Crude closed at Rs 4395 per barrel, gaining 1%.
EIA data showed that the US Crude inventories fell 3.6 million barrels in the week to May 25. Refinery crude runs rose 527,000 barrels per day to 17.2 million bpd as utilization rates jumped 2.1 percentage points to 93.9% of total capacity, the highest runs and rates since January, EIA data showed. In a key data the Gasoline stocks rose by 534,000 barrels. Demand for the fuel over the past four weeks rose 0.8% year-on-year ahead of the Memorial day weekend which marks the official start to the summer driving season in the United States. Distillate stockpiles, which include diesel and heating oil also rose by 634,000 barrels. Net US crude imports fell last week by 959,000 bpd as exports jumped 431,000 bpd to 2.2 million bpd. Crude stocks at the Cushing, Oklahoma, delivery hub for WTI fell 556,000 barrels, EIA said. US Crude production continued to set a weekly record high, edging up to 10.8 million bpd.