All eyes on July for US oil demand to drain glut

New York

US oil traders are hoping the sweltering days of July are also hot ones for demand, believing the new month is the last best opportunity this year to see the overhang of inventories finally subside.

Export opportunities to Asia and big US summer driving demand - expected to hit a record last weekend - are seen as the primary drivers for a drawdown in stocks that have remained stubbornly above seasonal averages.

July is usually a big month for drawdowns: Over the last five years, inventories of crude oil have dropped by an average of 2.9 million b…