2020.04.3010:00:00UTC+00Oil Prices Extend Rally On Signs Of Rising US Fuel Demand

Oil prices jumped on Thursday to extend steep gains from the previous session as rising U.S. road fuel demand last week hinted at a recovery in energy demand.

West Texas Intermediate (WTI) crude futures were up as much as 15 percent at $17.34 a barrel, after having surged 22 percent on Wednesday. The most active Brent crude contract for July was up more than 8 percent at $26.21 a barrel.

According to the data released by the Energy Information Administration (EIA) on Wednesday, crude stockpiles rose by about 9 million barrels in the U.S. in the week ended April 24, lower than an expected rise of about 11.7 million barrels.

U.S. gasoline stockpiles dropped by 3.7 million barrels from record highs as a slight increase in fuel demand offset a rebound in refinery output.

Implied U.S. gasoline demand climbed by 10pc to 5.9mn b/d last week, suggesting the worst might be behind the oil market.

That was the fuel's highest estimated consumption since 27 March but still 37pc lower than the same week last year.

The Trump administration is expected to announce a plan to offer loans to the ailing oil industry possibly in exchange for a financial stake, the Bloomberg said, citing two people familiar with the matter.

Treasury Secretary Steven Mnuchin and Energy Secretary Dan Brouillette have already briefed Trump on a plan to provide financial aid to oil drillers beset by a historic crash in prices, the report said.