London — Oil prices rose on Wednesday after an industry report showed US crude inventories fell last week, more than analysts had expected, bolstering hopes that fuel demand in the world’s biggest economy can weather the coronavirus pandemic.
The American Petroleum Institute said on Tuesday that crude stocks fell by 4-million barrels last week, compared to analysts’ expectations in a Reuters poll for a draw of 2.9-million barrels. The “fall in US API crude inventories ... the third sizeable weekly fall in a row, has supported prices today”, said Jeffrey Halley, senior market analyst at Oanda.The US Energy Information Administration now expects US crude production to fall by 990,000 barrels per day this year to 11.26-million bpd, steeper than the 600,000 bpd decline it forecast last month.