Oil prices climbed over 1% on Wednesday, after an industry report showed US crude inventories have fallen more than expected, while hopes of an effective Covid-19 vaccine continued to bolster sentiment.
Brent crude futures were up 48 cents, or 1.1% to $44.09 a barrel at 0445 GMT, while US West Texas Intermediate (WTI) crude futures also rose 48 cents, or 1.2%, to $41.84 a barrel. Both benchmarks gained nearly 3% on Tuesday.
Crude stockpiles fell by 5.1 million barrels last week to about 482 million barrels, industry group data showed on Tuesday, compared with analysts’ expectations in a Reuters poll for a reduction of 913,000 barrels.
“Defying analysts’ expectations again, the American Petroleum Institute (API) reported on Tuesday a significant ‘draw’ in crude oil inventories,” said Stephen Innes, chief market strategist at AXI.
