Oil prices rose on Wednesday on a string of positive manufacturing data and a drawdown in U.S. crude inventories, both indicating an economic recovery and rise in energy demand despite surging coronavirus infections around the world.
Brent crude was up $1.19, or 2.9%, to $42.46 a barrel at 0900 GMT, and U.S. crude was up $1.15, or 2.9%, at $40.42 a barrel.
U.S. crude and gasoline stocks fell more than expected last week, while distillate inventories rose, data released by the American Petroleum Institute (API) late on Tuesday showed. [API/S]
“The market’s main concern is demand and how COVID-19 affects it, so any hint that demand is recovering is welcomed with a price boost,” said Rystad Energy analyst Louise Dickson.
Official inventory data from the U.S. Energy Information Administration (EIA) is due out later on Wednesday.