05:08 AM EDT, 07/11/2024 (MT Newswires) -- Crude oil prices advanced amid signs of strong demand, driven by robust travel around the U.S. Independence Day holiday, ANZ Bank said in a Thursday note.

Jet fuel demand rose to its highest level for this time of year since 2019, the U.S. Energy Information Administration reported. Gasoline demand also improved, hitting its highest seasonal level since 2021. Gasoline inventories fell to their lowest level since May.

U.S. crude oil stockpiles also fell 3.4 million barrels last week, the EIA reported. This was more than a report from the American Petroleum Association suggested, the bank noted.

However, gains were muted amid ongoing concerns about demand in China where recent data underscored economic challenges facing the country, ANZ Bank said.

On the supply side, key members of the Organization of the Petroleum Exporting Countries and allied producers continue to exceed their output quotas, which also limited price gains, the bank said. Iraq, Kazakhstan and Russia are collectively producing several hundred thousand barrels per day above quota, according to data published by the OPEC secretariat.

Brent crude rose 0.6% to US$85.55 per barrel and West Texas Intermediate crude gained 0.5% to US$82.54/b at last look early Thursday.