(Bloomberg) -- Oil was steady in early Asian trading as investors weighed signs of improving U.S. demand against the prospect of more crude supply flowing from Iran should a nuclear deal be revived.
Futures in New York traded near $66 a barrel after a edging higher on Tuesday. A U.S. industry report showed crude and gasoline stockpiles fell last week, with the American summer driving season kicking off this month. Talks between Iran and world powers continued in Vienna to resolve issues on a nuclear deal that could pave the way for lifting of sanctions on the OPEC producer.
Oil is up more than 35% this year as a robust rebound from the pandemic in the U.S., China and Europe drives a recovery in consumption, despite parts of Asia facing a Covid-19 comeback. A key price spread for West Texas Intermediate is signaling that traders are bracing for a potential supply crunch just ahead of the busy summer driving season that sparks a demand surge.
The American Petroleum Institute reported gasoline stockpiles fell by almost 2 million barrels last week, while crude inventories slid by 439,000 barrels, according to people familiar. Official government figures are due Wednesday.
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