Oil rose on Wednesday, topping $40 a barrel for the first time since March, supported by lower U.S. inventories, expectations that Organization of the Petroleum Exporting Countries and other producers including Russia (OPEC+) will keep oil output cuts in place and signs of demand recovery from the coronavirus crisis.
Suggesting a supply glut is on the way out, the American Petroleum Institute said on Tuesday U.S. crude inventories fell by 483,000 barrels. The government’s official supply report is due out later on Wednesday.
Brent crude futures for August were up 59 cents, or 1.5%, at $40.16 by 0840 GMT, reaching a high of $40.53, the highest since March 6. U.S. West Texas Intermediate (WTI) crude for July gained 80 cents, or 2.2%, to $37.61.
