Oil rises as falling U.S. inventories refocus market on demand

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Brent crude climbed by 40 cents to $81.17 a barrel by 0723 GMT, while U.S. West Texas Intermediate crude gained 48 cents to $77.55

Oil rose on Wednesday after plunging more than 2 per cent in the previous session as reports of falling U.S. crude oil and fuel inventories refocused investors on robust demand in the world’s top oil consumer.

Gasoline inventories fell 1.9 million barrels last week, while distillate inventories rose by 1.7 million barrels, the sources said the API reported. Official stockpiles data from the U.S. government is due on Wednesday. Oil prices dived more than 2 per cent on Tuesday, returning to the near the same level before the Organization of the Petroleum Exporting Countries and other producer allies such as Russia, known as OPEC+, announced an additional output reduction in early April.

 

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