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Oil Prices Climb After Large Drop In Inventories

Oil prices rallied on Wednesday after industry data showed that U.S. inventories of crude fell more than analysts expected, raising hopes of a recovery in global oil demand.

Benchmark Brent crude rose 70 cents, or 1.5 percent, to $45.19 a barrel, after falling about 1 percent in the previous session. West Texas Intermediate crude futures were up 67 cents, or 1.6 percent, at $42.28, after having declined 0.8 percent on Tuesday.

The American Petroleum Institute reported late Tuesday that U.S. crude stocks fell by 4 million barrels last week, beating expectations of draw of 2.9 million barrels.

The API data also showed gasoline stockpiles declined by 1.3 million barrels, while distillate inventories fell by 2.9 million barrels.

The Energy Information Administration will release its inventory data later today.

The material has been provided by InstaForex Company – www.instaforex.com