Oil Extends Gains For Third Day After Major Inventory Draw

Oil prices rose for a third straight session Wednesday, as signs of falling stockpiles outweighed confusing signals on OPEC+’s next policy move.

Benchmark Brent crude futures climbed 1.7 percent to $85.66 a barrel, while WTI crude futures were up 1.8 percent at $79.62.

The weekly inventory report from the American Petroleum Institute (API) pointed to a substantial draw in U.S. crude stockpiles.

U.S. crude oil inventories dropped by 7.9 million barrels in the week ended Nov. 25, helping offset demand concerns.

Official figures are due from the U.S. Energy Information Administration later in the day.

Investors are also hoping the Organization of the Petroleum Exporting Countries and their allies, known collectively as OPEC+, will look to support prices.

However, the December 4 gathering is likely to be online event – prompting speculation that no major decision will be taken and that output targets will be rolled over.

The U.S. dollar eased from a one-week high as investors awaited a speech by Federal Reserve Chair Jerome Powell later in the day for additional clues about the central bank’s thinking on inflation and interest-rate hikes.