Oil prices extended gains on Wednesday after an industry report showed that US crude inventories fell for the first time in four weeks, while President Donald Trump reiterated that India would scale back its purchases of Russian energy.
West Texas Intermediate (WTI) climbed toward US$58 a barrel after closing 0.4% higher on Tuesday, while Brent crude settled above US$61. Data from the American Petroleum Institute (API) showed that US crude stockpiles fell by 3 million barrels last week, with gasoline and other fuel inventories also recording declines. The US Energy Information Administration (EIA) is expected to release official figures later Wednesday.
Trump said for the second consecutive week that he had discussed with Indian Prime Minister Narendra Modi plans to reduce India’s imports of Russian oil. The Indian embassy has not yet commented on the statement.
Despite recent gains, oil remains on track for a third consecutive monthly loss, pressured by signs of a global supply surplus. However, the lower prices have provided an opportunity for the US government to replenish its strategic reserves, with plans to purchase 1 million barrels for delivery in December and January.
As of early Wednesday, WTI for December delivery rose 0.6% to US$57.56 a barrel, while Brent for December settlement closed 0.5% higher at US$61.32 a barrel on Tuesday.
Bloomberg
