Oil up as U.S. production falls, stockpiles draw "The market has just realised the extent of the U.S. crude oil production decline and is pricing this in," said Daniel Ang, oil analyst at brokerage Phillip Futures.
Tuesday's jump in oil prices pushed both crude benchmarks out of narrow trading ranges that had held for more than a month and chart analysts said prices could now rise further.
"The key technical indicators are positive," said Robin Bieber, director of London brokerage PVM Oil Associates, adding: "It is not advised to be short."
Investors awaited oil industry figures from the EIA at 10:30 a.m. EDT (1430 GMT) to see if they confirmed the API data.
The International Energy Agency has said it expects world oil demand to increase by around 1.7 million barrels per day (bpd) this year, one of the fastest rates for years as consumers respond to much lower fuel prices.
Total Chief Executive Patrick Pouyanne said on Wednesday the growth in fuel demand could be even higher:
"World oil demand is expected to grow 1.7 million bpd in 2015. My traders told me more than that," he told an industry conference in London.
The tightening market balance comes as U.S. production starts to decline. The EIA forecasts U.S. oil output will fall to 8.86 million bpd from an average of 9.25 million in 2015.
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