Oil Rises on Us Crude Stocks Drawdown

Oil Rises on Us Crude Stocks Drawdown

Oil prices rose in early Asian trading on Wednesday as industry data showed a larger-than-expected drawdown in US crude stockpiles.

US West Texas Intermediate (WTI) crude rose 67 cents, or 0.7 percent, to $95.65 a barrel by 00:09 GMT. Brent crude futures rose 33 cents, or 0.3 percent, to $104.73 a barrel.

After Tuesday’s deal, industry group the American Petroleum Institute said US crude stocks fell 4 million barrels last week. That’s four times the 1 million-barrel drop expected by analysts in a Reuters poll.

Gasoline inventories fell by 1.1 million barrels compared with expectations for a build of 3.5 million barrels, API data showed. The US government’s Energy Information Administration releases its weekly oil report later on Wednesday.

Prices also rose on expectations of further gas restrictions in Europe from Wednesday after Russia’s Gazprom said it would cut flows through the Nord Stream 1 pipeline to Germany to a fifth of capacity.

European Union countries on Tuesday approved a weakened emergency plan to curb demand, after reaching compromise deals to limit cuts for some countries.

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