Oil rose in early trade on Wednesday on expectations global oil stocks will fall back to more normal levels this year and as U.S. lawmakers moved closer to approving President Joe Biden's US$1.9 trillion COVID-19 aid bill without Republican support.
U.S. West Texas Intermediate crude futures climbed 11 cents, or 0.2per cent, to US$54.87 a barrel at 0130 GMT, in a third straight day of gains. The benchmark hit a one-year high of AUS$55.26 on Tuesday.Brent crude futures rose 16 cents, or 0.3per cent, to US$57.62 a barrel, in a fourth straight day of gains after hitting US$58.05 on Tuesday, its highest in more than 11 months.
Further supporting the market, industry data after the market closed on Tuesday showed U.S. crude and gasoline inventories fell unexpectedly.