Oil rallies on US inventory draw and rise in Japanese imports

Oil prices at both the sides of the Atlantic rallied in Asia after a private data in US showed a drop in inventories, while Japan reported higher oil imports.

At the time of writing, WTI oil was up 1.84% or 81 cents at $44.87/barrel. Brent oil was up 1.31% or 0.60% at $46.48/barrel.

API reported a draw in inventories

American Petroleum Institute (API) released overnight showed a 7.5 million barrel draw to 507.2 million barrels in US crude inventories, the third weekly inventory draw. Markets were expecting an increase of 3.4 million barrels.

Japan crude imports rise

Japan reported a surprise trade deficit, which is bad news for Japanese economy. However, the details showed oil imports rose 0.5 percent in August from the same month a year earlier. The bullish news added to the bid tone around oil prices.

The focus now is on the action in the USD index following the BOJ rate decision. Later in the day, US government inventory data and FOMC rate decision could influence prices.  

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.