Oil prices moved skyward on Wednesday as U.S. crude inventories decreased by 1.7 million barrels in the week ending October 18, according to information released by the U.S. Energy Information Administration.
Brent crude futures gained 47 cents, or 0.82%. West Texas Intermediate crude futures for December delivery, the new front-month contract, rose 1%, to $55.00 U.S. per barrel. The November contract expired on Tuesday at $54.16.
Sata from the American Petroleum Institute revealed that analysts had been expecting a gain of 2.2 million barrels.
Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) is mulling whether to deepen production cuts amid concerns of weak demand growth next year, underpinning prices after helping to lift both benchmarks on Tuesday.
OPEC and other oil producers including Russia, a group known as OPEC+, have pledged to cut production by 1.2 million barrels per day (bpd) until March 2020.
OPEC and other non-members are scheduled to meet again from Dec. 5 to 6.
OPEC’s de facto leader Saudi Arabia, however, wants to focus first on boosting adherence to the group’s output reduction pact before committing to more cuts.
