Oil futures rose on Wednesday, snapping a three-year losing streak, after the U.S. reported a much bigger-than-expected drop in crude inventories last week, marking a third straight decline.

This Oil inventories down 4.9 million barrels he accompanied him is boosting inventories of gasoline and diesel fuel as refineries continue to operate at high speed despite falling capacity utilization on the Gulf Coast, where Hurricane Beryl made landfall early last week.

Gasoline demand fell to 8.8 million barrels a day after the July 4 holiday week, compared with 9.4 million barrels a day in each of the previous two weeks.

The post-holiday week likely saw “a decline in overall travel demand, which supported gains in distillate and gasoline prices as inflows remained strong,” said Gary Cunningham, director of market research at Tradition Energy. Market watch.

Meanwhile, shares of energy companies (NYSEARCA:XLE) rose as investors returned to sectors that had been lagging in recent months.

“Energy has now reversed some of June’s weakness against oil, but a softening outlook for inflation and oil balances has limited new investor interest,” Morgan Stanley analysts said.

Nymex (CL1:COM) Crude Oil Deliveries Completed for August +2.6% to $82.85/bbl, the largest single-day percentage escalate since June 10, and the September Brent crude price (CO1:COM) settled +1.6% to USD 85.08/bbl.

US Natural Gas (NG1:COM) posted another session of gigantic declines, with the August contract for the coming month closed -7% to $2.035/MMBtu, the lowest clearing price since May 2.

ETFs: (NYSEARCA: USE), (BNO), (UCO), (SCO), (USL), (DBO), (DRIP), (GUSH), (NRGU), (USOI), (UNG), (COOKING), (KOLD), (UNL), (FCG)

Bearish factors include less warmth in the near-term forecast, sluggish liquefied natural gas exports and profuse production continue to burden the natural gas marketwith the combination leading to a “pause in the reduction of excess inventory that was a major source of support in the May to early June period,” Ritterbusch analysts said, according to Dow Jones.

“While net speculative short positions are already in bull territory, there appears to be room for more speculative selling,” Ritterbusch wrote.