Oil prices bounce back as investors hope U.S. inventory data will point to stronger summer fuel demand

Here are today’s energy prices:

• West Texas Intermediate August contract: $81.53 per barrel, up 70 cents, or 0.87%. Year to date, U.S. oil has gained 13.8%.
• Brent August contract: $85.66 per barrel, up 65 cents, or 0.76%. Year to date, the global benchmark is ahead 11.2%.
• RBOB Gasoline July contract: $2.53 per gallon, up 0.76%. Year to date, gasoline has gained 20.5%.
• Natural Gas July contract: $2.71 per thousand cubic feet, down 1.74%. Year to date, gas is ahead 7.7%.

Traders are waiting for confirmation that demand is firming from the latest U.S. oil and gasoline inventory data, which the Department of Energy is scheduled to release at 10:30 a.m. ET.

“The ubiquitous view is that demand will increase during the summer and with OPEC+ cuts fully in place until October global and OECD stocks ought to deplete,” John Evans, analyst at oil broker PVM, said in a Wednesday note.

“Thus, convincing stock draws in the US would go a long way to bolster this optimism,” Evans said.

Analysts are expecting that U.S .oil and gas inventories fell by 2.9 million barrels and 1 million barrels, respectively, last week, according to a Reuters poll.

Traders are also monitoring the situation on the Israel-Lebanon border. Israel and the Iran-backed militia group Hezbollah have threatened war recently, after trading fire across the border for months.

There are fears an Israeli offensive in Lebanon could trigger a direct confrontation with OPEC member Iran, potentially jeopardizing crude oil supplies.