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Oil rises 2% on hopes for demand after the decline in US inventories
Crude prices rose more than 2%, after government data showed a broad decline in crude oil inventories in the United States, which boosted hopes that fuel demand in the world's largest economy will withstand the coronavirus pandemic.
Before the European market closed, Brent crude was up 95 cents, or 2.1 percent, to $ 45.44 a barrel, after dropping nearly 1 percent on Tuesday.
West Texas Intermediate crude rose a dollar, or 2.5 percent, to record $ 42.61 a barrel, after falling 0.8 percent in the previous session.
US inventories of crude oil, gasoline and distillates declined last week as crude production fell sharply, while refiners increased production, the Energy Information Administration said today.
Crude inventories decreased by 4.5 million barrels, while analysts in a Reuters poll expected a decline of 2.9 million barrels.
Tony Headrick, energy market analyst at CHS Hedging, said the report was "very supportive," adding, "If we look beyond the overall decline in stocks, we find that crude oil production has finally shrunk, it has fallen by 300,000 barrels."
