Oil prices rose on Wednesday after a sharp drop in U.S. crude inventories, with the market waiting for more direction from a meeting later in the day on the future level of production by OPEC and its allies.
In a sign of improving demand despite the coronavirus pandemic, U.S. crude inventories fell by 8.3 million barrels in the week to July 10, beating analysts' expectations for a decline of 2.1 million barrels, according to data from industry group the American Petroleum Institute. On supply, the market will be closely watching the Joint Ministerial Monitoring Committee of the Organization of the Petroleum Exporting Countries later on Wednesday.
"OPEC+ decision on production cut tapering will set the tone for the oil market," ANZ Research said in a note.