SULAIMANI (ESTA) — Oil prices rose on Wednesday after industry data showed U.S. crude stocks unexpectedly fell last week just as near-term travel demand picked up coronavirus pandemic curbs easing.
Brent crude futures climbed 53 cents to $85.31 a barrel by 0647 GMT, after rising 1.6% on Tuesday.
U.S. West Texas Intermediate (WTI) crude futures rose 28 cents to $84.43 per barrel, adding to Tuesday’s 2.7% gain.
Both benchmarks closed at their highest since October 26 on Tuesday, supported by tightening global oil inventories during the past several months, and the latest data from the American Petroleum Institute reinforcing the view that supply remains constrained.
According to market sources, API data showed U.S. crude stocks declined by 2.5 million barrels for the week to November 5, according to Reuters.
“Supplies are tight with OPEC sticking to its guns,” Reuters quoted senior commodities manager at Philip Futures in Singapore Avtar Sandu as saying.
Growing air travel is also supporting oil demand, Sandu said.
“I still see a bull charging on; it might be taking a break now, but [if there’s] any small spark, it might just continue its march,” he added.
