Oil Prices Climb on Expected Draw

Oil prices climbed more than $1 on Wednesday, extending overnight gains after industry data showed U.S. crude stocks fell more than expected last week in the wake of two hurricanes, highlighting tight supply as demand improves.

Prices were also supported as some members of the Organization of the Petroleum Exporting Countries (OPEC) struggle to raise output and by a general sense of energy market shortages amid a power and gas crisis in Europe.

U.S. West Texas Intermediate (WTI) crude futures rose $1.04, or 1.49%, to $71.54 a barrel, adding to a 35-cent gain from Tuesday.

Brent crude futures climbed $1.08, or 1.5%, to $75.44 U.S. a barrel, after gaining 44 cents on Tuesday.

The oil market’s focus turned to concerns of tight supply, after Monday’s pressure from broad market jitters over the possible default of Chinese property developer China Evergrande Group.

Moreover, U.S. crude stocks fell by 6.1 million barrels for the week ended Sept. 17, market sources said, citing Tuesday’s figures from the American Petroleum Institute.