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Oil Rises After Surprise Drop in US Inventories

Oil Rises After Surprise Drop in US Inventories Oil Rises After Surprise Drop in US Inventories

Oil prices rose on Wednesday after an industry report showed that crude inventories in the United States fell against expectations, giving the market a boost amid record increases of coronavirus infections in the US and elsewhere.
Brent crude futures were up by 14 cents, or 0.3%, at $43.36 a barrel, after dropping 0.4% on Tuesday, CNBC reported.
US West Texas Intermediate crude futures gained 2 cents, or 0.1%, to $41.06 a barrel, having dropped 1.4% in the previous session.
Inventories of crude oil in the US dropped by 6.8 million barrels last week to 531 million barrels, data from industry group the American Petroleum Institute showed on Tuesday. Analysts’ expectations were for an increase of 357,000 barrels. US government data is due Wednesday. 
“This should temporarily alleviate some concerns about ongoing demand distress,” Stephen Innes, chief global markets strategist at AxiCorp said in a note.
The raging Covid-19 pandemic is keeping alive concerns about falling fuel demand causing an oversupplied market as record numbers of infections are reported globally, including the US, the world’s biggest consumer of oil.

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