Oil climbs 1% after U.S. crude stocks signal tighter supply

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SINGAPORE: Oil prices rose at the start of Asian trade on Wednesday after industry data showed drawdowns in U.S. crude and fuel stockpiles, raising supply concerns and offsetting worries about slowing demand from top importer China.

Brent crude futures rose 89 cents, or 0.9%, to $105.86 a barrel by 0223 GMT. West Texas Intermediate crude futures rose 97 cents, or 1%, to $103.38 a barrel.

European Commission President Ursula von der Leyen is expected to spell out the plans on Wednesday, officials said. "The API report had people stop worrying about the demand side and start worrying about the supply side again," said Phil Flynn, an analyst at Price Futures group.During the previous session, demand worries stemming from China's prolonged COVID-19 lockdowns that curtailed travel plans during the Labour Day holiday season caused prices to fall by more than 2%.

"The big picture is clearly negative for commodities demand," she said, adding that rising inflation and higher interest rates are starting to bear down on spending.

 

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