SULAIMANI (ESTA) — Oil prices rose climbed 1% on Wednesday after industry data showed drawdowns in U.S. crude and fuel stockpiles, raising supply concerns and offsetting worries about slowing demand from top importer China.
Brent crude futures rose $1.5 to $106.5 a barrel by 0633 GMT. West Texas Intermediate crude futures rose $1.6 to $104 a barrel.
The gains come on the back of news from Tuesday that the European Union is working on new sanctions against Russia for waging war on Ukraine that will target Moscow’s oil industry, according to Reuters.
European Commission President Ursula von der Leyen is expected to spell out the plans on Wednesday, Reuters cited officials as saying.
In the United States, crude and fuel stocks fell last week, according to market sources citing American Petroleum Institute figures.
Crude stocks fell by 3.5 million barrels for the week ended April 29, the sources said told Reuters.
“The API report had people stop worrying about the demand side and start worrying about the supply side again,” Reuters quoted Phil Flynn, an analyst at Price Futures group as saying.
U.S. government data on stockpiles is due on Wednesday.