Crude oil advanced after the three-day low of USD $ 98.21 which it plunged to yesterday. WTI crude futures recovered by 1.31 percent to USD $ 99.50 a barrel.
After unexpectedly falling by 5.5 percent on account of data which showed that contrary to expectations, US Gasoline stocks increased instead of decreasing in anticipation of the summer driving season, crude futures rebounded to settle at just below the $100 per barrel mark. The price of USD $ 99.50 per barrel had made crude futures an attractive buy for investors. This increase in demand helped crude futures to regain some of its value.
US crude futures were also spurred upwards due to concerns that flooding along the Mississippi River might affect oil production in the region as well as in the Gulf of Mexico. There are a total of 11 refineries between New Orleans and Baton Rouge along the Mississippi River. The combined capacity of these refineries is of 2.5 million barrels per day, which amounts to 13 percent of US crude production. Fears that crude production might get affected have spurred crude futures upwards.
Meanwhile, Brent crude futures rose by 1.08 percent to be at USD $ 113.79 a barrel at the time of market closure.