Oil up as demand outlook brightens
Oil rose on Wednesday in Asia even as data showed a larger-than-expected draw in U.S. crude oil supplies. Expectations that the rate of COVID-19 vaccinations will help in the economic recovery from the pandemic also brightened the outlook for fuel demand.
Brent oil futures climbed up 0.63% to $74.06, by 11:47 PM ET (3:47 AM GMT), while West Texas Intermediate (WTI) futures added 0.62% to $70.89. Both benchmark futures remained above the $70-dollar mark.
The American Petroleum Institute’s data released on Tuesday showed a draw of 5.437 million barrels for the week ending September 10.
Investors are now awaiting crude oil supply data from the U.S. Energy Information Administration, due later in the day.
The draw came just as the Gulf of Mexico struggled to restore production that was halted by Hurricane Ida, which was followed by Tropical Storm Nicholas just two weeks later.
Meanwhile, the International Energy Agency stated on Tuesday that COVID-19 vaccine rollouts could push the economic recovery forward after the global fuel demand’s three-month decline due to the Delta variant outbreaks and the restrictions that followed.