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Oil rises after drop in US crude inventories
Oil prices rose in European trade on Wednesday, resuming gains after pausing yesterday, thanks to a sharp drop in US crude inventories, according to the American Petroleum Institute's preliminary data, and ahead of the EIA official data later today.
US crude rose 1.0% to $41.54, after opening at $41.13, and hit an intraday low of $40.95, and Brent rose 1.3% to $43.84, after opening at $43.29, and hit an intraday low of $43.22.
The US crude lost 1.3% yesterday, and Brent futures fell 0.5%, and posted their first loss in the last three days, due to fears over the trade relations between the US and China.
The American Petroleum Institute (API) revealed yesterday in preliminary data the US crude inventories fell 8.8 million barrels during the week ending July 24, beating forecasts of a rise by 0.4 million barrels.
The total inventories fell to 531 million barrels, which is a positive sign on demand and consumption levels in the US.
While the US Energy Information Administration (EIA) will release today the official data on inventories and production levels in its weekly report, with forecasts for inventories to rise 1 million barrels.
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