Crude oil prices rose on Wednesday, extending previous session’s gains, after data showed a larger than expected decline in U.S. crude inventories last week.
According to data released by the U.S. Energy Information Administration, crude oil inventories dropped by over 6.1 million barrels to 404.9 million barrels in the week ended July 20. Data from EIA showed that supplies at Cushing, Oklahoma decreased by 1.127 million barrels last week.
Data released by the American Petroleum Institute after market hours on Tuesday had showed U.S. crude stockpiles to have dropped to 407.6 million barrels in the week ended July 20, down by nearly 3.2 million barrels from a week earlier. Inventories were expected to drop by 2.3 million barrels in the week. Gasoline supplies fell by 4.87 barrels last week, the report from API showed.
Crude oil futures for September delivery ended at $69.30 a barrel on the New York Mercantile Exchange, gaining $0.78 or 1.13%.
It was feared earlier that demand for crude may fall due to uncertainty about the outlook for global economic growth due to trade tensions. However, demand concerns have subsided now on reports that the Chinese government is stepping up its infrastructure spending.