West Texas Intermediate (WTI) crude oil closed higher on Wednesday after a report showed U.S. inventories fell again last week amid strong summer demand while the dollar fell to a four-month low.
WTI crude oil for August delivery closed up US$2.09 to settle at US$82.85 per barrel, while September Brent crude, the global benchmark, was last seen up US$1.25 to US$84.98.
In its weekly survey, the Energy Information Administration reported U.S. oil inventories fell by 4.9-million barrels last week, well above the consensus estimate for a drop of 33,000 barrels, according to a Reuters poll. Gasoline and distillate inventories rose by 3.3-million and 3.5-million barrels, respectively.
The inventory drop may assuage traders who pushed oil to the lowest in more than three weeks on Tuesday as concerns over weak demand, particularly from China, the No.1 oil importer. China's ruling Communist Party is staging its Third Plenum this week to craft stimulus measures.
A weaker dollar is also aiding prices, with the ICE dollar index last seen down 0.52 points to 103.75, the lowest since March 20 on expectations the Federal Reserve will begin cutting interest rates in September.
Source : MT Newswires
