Oil pares gains as investors parse mixed US stockpile report

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Photo: Getty Images
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Oil pared gains as a bullish crude inventory report was offset by an unseasonal slowdown in gasoline demand.

West Texas Intermediate shed much of its earlier rally to hover just under $112 after earlier rising to as high as $114.05 a barrel.

Investors parsed a mixed US crude inventory report that showed US crude inventories fell as refiners boosted run rates, while gasoline demand on a four-week rolling average fell to the lowest seasonal level since 2014, with the exception of 2020.

US crude stockpiles at Cushing, Oklahoma, fell to the lowest since October 2014, according to an Energy Information Administration report Wednesday.

The slowdown in gasoline demand growth could be a sign that prices are starting to impact consumers, said Rebecca Babin, senior energy trader at CIBC Private Wealth Management. However, the outlook for oil is still strong, she added.

"Demand is currently below seasonal averages but the key thing for crude is that it is still growing."

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