Oil edges off low as strong export demand drains U.S. crude stocks

Shafaq News / Oil prices rose about 1.5% after hitting a six-month low on Wednesday, as a steeper-than-expected drawdown in U.S. crude stocks outweighed concerns over rising Russian output and exports as well as recession fears.

U.S. crude stocks fell by 7.1 million barrels in the week to Aug. 12 to 425 million barrels, Energy Information Administration (EIA) data showed, compared with analysts' forecasts for a 275,000-barrel drop in a Reuters poll.

Brent crude settled $1.31, or 1.42% higher at $93.65 per barrel. Earlier in the day, recession worries had pushed the benchmark price to its lowest since February at $91.51.

U.S. West Texas Intermediate (WTI) crude rose $1.58, or 1.8%, to $88.11 per barrel.

U.S crude exports hit 5 million barrels per day, the highest on record, EIA data showed, as WTI has traded at a steep discount to Brent, making purchases of U.S. crude more attractive to foreign buyers.

In a sign of strong demand, gasoline stocks drew 4.6 million barrels, much higher than the expected 1.1 million barrel draw.

(Reuters)