Oil rises on signs of US inventory drawdown, OPEC bullishness

Oil extended gains in early Asian trading after an industry report pointed to another decline in US crude stockpiles that followed an upbeat assessment of the demand outlook from OPEC.

Futures in New York rose 0.6% in New York after advancing 0.8% on Tuesday. The American Petroleum Institute reported crude inventories dropped by 3.61 million barrels last week, according to people familiar, which will be a third weekly draw if confirmed by government data Wednesday. OPEC boosted its consumption forecast for this year and predicted the market recovery will continue in the coming months, despite fears about a virus flare-up.