Oil Extends Gains After Crude Inventories Drop

Investing.com – West Texas Intermediate oil extended gains in North American trade on Wednesday, as data showed that oil supplies in the U.S. fell more than expected.

for September delivery on the New York Mercantile Exchange rose 56 cents, or 0.82%, to trade at $69.08 a barrel by 10:33 AM ET (2:33 GMT), compared to $68.66 ahead of the report.

The U.S. Energy Information Administration said in its weekly report that fell by 6.147 million barrels in the week ended July 20. Market analysts’ had expected a crude-stock decline of 2.600 million barrels, while the American Petroleum Institute late Tuesday reported a decline of 3.160 million.

, the key delivery point for Nymex crude, decreased by 1.127 million barrels last week, the EIA said.

Total U.S. crude oil inventories stood at 404.9 million barrels as of last week, which the EIA said was “3% below the five year average for this time of year.”

The report also showed that decreased by 2.328 million barrels, compared to expectations for a decrease of 713,000 barrels, while fell by 101,000 barrels, compared to forecasts for a rise of 207,000.

Meanwhile reports that China is increasing its infrastructure spending reduced trade tension fear between the U.S. and China. Traders worry that a trade war could put a dent in China’s demand for oil.

Skyrocketing inflation in Venezuela also increased prices, with the country unable to boost its oil output.

Elsewhere, on the ICE Futures Exchange in London, rose 0.95% to $74.14, while increased 0.62% to $2.1242 a gallon and gained 1.10% to $2.1561 a gallon.

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