Globe & Mail Crude prices added to recent gains with a bigger-than-expected decline in U.S. inventories bolstering optimism over the rebound in demand.
The day range on Brent is US$69.25 to US$69.89. The range on West Texas Intermediate is US$66.03 to US$66.62.
Both benchmarks rose roughly 2 per cent during the previous session.
The latest gains came after the American Petroleum Institute reported that U.S. crude stocks fell by 7.7 million barrels last week. That was more than triple the decline that analysts polled by Reuters had been expecting to see.
More official numbers will be released later Wednesday morning by the U.S. Energy Information Administration.
“Crude prices remain elevated as both the supply and demand side fundamentals remain very bullish,” OANDA senior analyst Ed Moya said.
“The energy market no longer has oversupply concerns as U.S. production will likely remain stable and as OPEC+ is sticking to its plan to gradually increase output.”
He said the crude demand outlook is getting mixed headlines “but nothing too negative that will change the overall improving theme.” He noted that a COVID-19 crackdown in Singapore is scheduled to last only a few weeks and should be viewed as health experts taking an abundance of caution. However, the situation in India remains serious with leaders facing growing pressure to announce lockdowns, Mr. Moya said.