Petroleum prices rose on Wednesday after an industry report showed U.S. crude inventories last week fell more than analysts had expected, bolstering hopes that fuel demand in the world’s biggest economy can weather the coronavirus pandemic.
Brent crude was up 61 cents, or 1.4%, at $45.11 U.S. a barrel, after falling around 1% on Tuesday.
West Texas Intermediate oil was up 59 cents, or 1.4%, at $42.20 U.S. a barrel, having dropped 0.8% in the previous session.
The American Petroleum Institute (API) said on Tuesday that crude stocks fell by four million barrels last week, versus analysts’ expectations in an economist poll for a draw of 2.9 million barrels.
The report also showed falls in gasoline and distillate stocks. Official government data is due later on Wednesday.
The U.S. Energy Information Administration now expects U.S. crude production to fall by 990,000 barrels per day (bpd) this year to 11.26 million bpd, steeper than the 600,000 bpd decline it forecast last month.
Still, growing uncertainty over a stalemate in Washington in talks for a stimulus package to support recovery from the deepest impact of the pandemic may weigh on prices looking ahead.
