Oil prices Rise after Unexpected Drop in US Inventories

Oil prices rose in early trading on Wednesday, extending gains in the previous session after  data showed a surprise drop in US crude inventories last week, an indication of increased demand and a shift in attention away from hostilities in the Middle East.

Brent crude futures rose 9 cents, or 0.1% to $88.51 per barrel.

US West Texas Intermediate (WTI) futures also increased 10 cents, or 0.11% to $83.45 per barrel.

Latest Oil Prices

WTI CRUDE                $83.45   +0.11%

BRENT CRUDE          $88.47   +0.06%

MURBAN CRUDE     $89.04   +0.13%

NATURAL GAS            $1.808   -0.22%

LOUISIANA LIGHT   $87.12  +0.03%

BONNY LIGHT          $88.87  +0.76%

OPEC BASKET           $86.51   -1.15%

MARS US                   $77.26  -1.92%

GASOLINE                   $2.721-0.17%

Market sources, citing figures from the American Petroleum Institute, reported that US crude inventories fell by 3.237 million barrels in the week ending April 19, while six analysts polled by Reuters expected an increase of 800,000 barrels.

Traders are awaiting official US data on oil and product inventories scheduled to be released to confirm the significant decline in inventories.

Meanwhile, expectations are growing that the UK and EU will cut interest rates in June, which could help support economic growth and thus increase demand for oil.

Business activity in the euro zone and the United Kingdom grew this month at the fastest pace in almost a year, indicating that economic growth “continues to gain momentum,” Capital Economics said in a note.

Traders largely ignored the latest developments in the Middle East in early trading on Wednesday, with residents saying Israel had intensified its strikes across Gaza, in some of the heaviest waves of bombing in weeks.