Oil rises on U.S. crude stock drawdown
2022.07.27 03:58
FILE PHOTO: Sticker reads crude oil on the side of a storage tank in the Permian Basin in Mentone, Loving County, Texas, U.S. November 22, 2019. REUTERS/Angus Mordant
By Laura Sanicola
(Reuters) – Oil prices rose in early Asian trade on Wednesday as industry data showed a larger-than-expected drawdown in U.S. crude stockpiles.
U.S. West Texas Intermediate (WTI) crude rose 67 cents, or 0.7%, to $95.65 a barrel by 0009 GMT.
Brent crude futures rose 33 cents, or 0.3%, to $104.73 a barrel.
After settlement on Tuesday, industry group the American Petroleum Institute said crude stocks in the United States fell by 4 million barrels last week.
That is four times the 1 million barrel decline expected by analysts in a Reuters poll. [EIA/S]
Gasoline inventories fell by 1.1 million barrels compared with expectations of a build of 3.5 million barrels, the API data showed.
The U.S. government’s Energy Information Administration releases its weekly oil report later on Wednesday.
Prices were also lifted by expectations of a tighter gas squeeze in Europe from Wednesday after Russia’s Gazprom (MCX:GAZP) 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 striking compromise deals to limit reductions for some countries.
