Oil jumps to two-week high as demand continues to drain stockpiles

Oil jumps to two-week high as stockpile draw Oil climbed to its highest level in more than two weeks as strong summer demand in the US continued to drain stockpiles.

Futures rose as much as 1.3 per cent after the Energy Information Administration (EIA) reported American crude inventories fell by 8.5 million barrels last week, a seventh straight decline that was higher than all industry and analyst estimates. Stockpiles of gasoline and distillate fuels also shrank, helping ease concerns about slowing consumption.

Still, oil surrendered some of its gains after an initial burst following the EIA data, as investors waited to see if the Federal Reserve will cut US interest rates as expected to boost the economy.