Oil gains after report of surprise drop in US crude stocks

Oil extended gains to near $39 a barrel in New York, buoyed by an industry report of a surprise drop in US crude stockpiles and advances in other financial markets.

The American Petroleum Institute reported crude stockpiles declined by 9.52 million barrels last week, according to people familiar with the numbers. That contrasts with an increase forecast in a Bloomberg-compiled survey for government data due Wednesday. While the global economy is still expected to shrink this year, the slump won’t be as sharp as previously feared, according to the OECD.

Still, oil investors are processing a slew of bearish calls this week. The International Energy Agency warned on Tuesday that the outlook is “even more fragile” due to a resurgence of the coronavirus.