US crude oil inventories fell by 4.38 million barrels, slightly more than market estimates.
Oil futures contracts are trading higher on Wednesday, amid concerns about the next developments in the conflict between Israel and the terrorist group Hamas following the explosion of a hospital in Gaza, while agents monitor stock data for the commodity.
At around 10.40 a.m. (Brasilia time), the Brent oil futures contract – the global benchmark – for December was advancing 1.38%, trading at US$91.71 per barrel. The US benchmark West Texas Intermediate (WTI) for December was up 1.73% at US$86.91 a barrel.
“The oil market is gaining strength in the early morning as tensions rise after a bomb attack on a hospital in Gaza, which was followed by the cancellation of a Jordanian summit with Arab leaders and US President Joe Biden,” says Dutch bank ING in a report.
In addition, the analysts write that oil inventory figures from the API trade group released overnight “will also provide some support to the market”. US crude oil inventories fell by 4.38 million barrels, slightly more than market estimates pointed to.
Agents are now awaiting official data from the US Department of Energy, which will be released at 11.30am.