Oil extended gains to a fresh two-month high after a report showed a decline in U.S. stockpiles, adding to the bullish momentum after progress toward mass deployment of a coronavirus vaccine lifted optimism on the demand outlook.
Futures in New York rose as much as 2.2%, after jumping 2.7% on Tuesday. The industry-funded American Petroleum Institute reported U.S. oil inventories shrank by 5.15 million barrels last week, according to people familiar. That would mark the second week of reduced stockpiles, if confirmed by official government data later in the week. Gasoline and distillate stocks also declined in another positive sign for consumption.
