Oil jumps 1% on API inventory draw, EIA report eyed

Oil prices on both sides of the Atlantic are seen adding onto yesterday’s gains, as the sentiment was bolstered by a drawdown in the US crude stockpiles and falling Chinese crude production.

WTI  nears $ 51 mark

Currently, both crude benchmarks extend the upside, with Brent up +0.97% at $ 52.18, while WTI advances +1% to 50.80. Oil prices extend its bullish momentum into a second day this Wednesday, as oil markets cheer upbeat API crude supply report released late-Tuesday.

The API report showed that the US crude stockpiles fell 3.8 million barrels in the week to Oct. 14, to 467.1 million barrels.

Moreover, renewed optimism over the prospects of a planned production cut after Nov 30 Vienna OPEC meeting, also offers support to the black gold.

Further, the Chinese government reported that the country’s oil production fell 9.8% to 15.98 million tonnes (3.89 million bpd), marking its steepest decline in 19 months, which also collaborated to the upbeat sentiment behind the commodity.

Later today, the official US government crude reserves report will be published in the American session, which will throw fresh light on the supply-side scenario. While the USD price-action will be also closely watched for further momentum on the USD-denominated oil.