Oil prices rise as US crude inventory drop

Shafaq News/ Oil prices rose, on Wednesday after a steep drop in U.S. crude inventories, but another record day for coronavirus cases worldwide kept gains in check, Reuters reported. 

Brent crude futures LCOc1 settled at $43.75 a barrel, up 53 cents, or 1.2%. U.S. West Texas Intermediate crude futures CLc1 settled at $41.27 a barrel, gaining 23 cents, or 0.6%.

U.S. crude oil inventories fell by 10.6 million barrels last week to 526 million barrels, the Energy Information Administration said, the largest drawdown since December. 

Net U.S. crude imports fell 1 million barrels per day to 1.9 million BPD, the EIA said.

The fall in crude stocks was likely a result of supply cuts, agreed in April by the Organization of the Petroleum Exporting Countries and its allies, finally being realized.

"The expectation is that the OPEC cuts are going to lead to bigger draws in the United States and this could be the beginning of it", said Phil Flynn, senior analyst at Price Futures Group in Chicago.