Oil settles higher on US inventory drop, Russia gas cuts
Oil settled up more than $2 on Wednesday as a report of lower inventories in the United States and cuts in Russian gas flows to Europe offset concern about weaker demand and a US interest rate hike.
US crude oil stockpiles dropped 4.5 million barrels last week as exports surged to an all-time high due to US crude’s big discount to international benchmark Brent, the Energy Information Administration said.
Brent crude rose $2.22, or 2.1%, to $106.62 a barrel. US West Texas Intermediate (WTI) crude gained $2.28, or 2.4%, to $97.26.
After a sharp drop in the last two weeks, US gasoline demand rebounded by 8.5% week on week, according to the data.
