Oil prices extended gains on Wednesday after Energy Information Administration (EIA) data showed a big draw in U.S. crude inventories.
Brent crude futures were up 61 cents at $64.44 U.S. a barrel, while U.S. West Texas Intermediate crude was up 67 cents at $57.48 a barrel.
EIA data showed that U.S. crude inventories decreased by 10.8 million barrels from the week before.
U.S. crude stocks plummeted more than expected in the week to July 19, declining by 11 million barrels to 449 million, according to the trade group American Petroleum Institute. That compared with analysts’ expectations for a decrease of four million barrels.
Meanwhile, evidence of rising tensions in the Middle East offset a weaker global growth outlook from the International Monetary Fund, which had kept prices largely flat for much of Tuesday’s session.
The U.S. said one of its naval vessels took defensive action against a second Iranian drone in the Strait of Hormuz last week, but did not see the drone go into the water.
Also fueling tensions, Britain gained initial support from France, Italy and Denmark for its plan for a European-led naval mission to ensure safe shipping through the Strait of Hormuz following Iran’s capture of a British-flagged tanker.
