Crude oil prices rose on Wednesday during the Asian trading session after data showed a larger-than-expected drawdown in crude inventories last week.
Brent crude oil, the international benchmark for Nigerian oil, gained 27 cents, or 0.3%, to $88.63 a barrel, while U.S. West Texas Intermediate (WTI) crude appreciated by 25 cents, or 0.3%, to $81.20 a barrel.
Both benchmark contracts rose about 1% on Tuesday as the United Arab Emirates, Kuwait, Iraq and Algeria reinforced comments from Saudi Arabia’s energy minister that the Organization of the Petroleum Exporting Countries (OPEC) and allies, together called OPEC+, were not considering boosting oil output. OPEC+ next meets to review output on Dec. 4.
U.S. crude inventories fell by about 4.8 million barrels for the week ended Nov. 18, data from the American Petroleum Institute showed, according to market sources.
Analysts polled by Reuters on average had expected a 1.1 million barrel drawdown in crude inventories.
Distillate stocks, which include heating oil and jet fuel, rose by about 1.1 million barrels compared with analysts’ expectations for a drop of 600,000 barrels.
Uncertainty over how Russia will respond to plans by the Group of Seven (G7) nations to cap Russian oil prices also provided some support to the market.
The price cap is due to be announced soon, a senior U.S. Treasury official said on Tuesday, adding that it will probably be adjusted a few times a year.
“Traders closely monitor Russia’s exports and will look for how much they might trim the nation’s foreign sales in retaliation, which could be a bullish fillip for oil prices,” SPI Asset Management managing partner Stephen Innes said in a note.
