Black commodities maintained a consolidation to trade higher in Wednesday’s trading session, supported by encouraging data readings in U.S. crude oil supplies.
An industry report from the American Petroleum Institute (API) reported that U.S. oil supplies declined by 4.7 million barrels last week. Meanwhile, petrol inventories dropped by 6.2 million barrels and distillation stocks declined by 1.9 million barrels.
The reading was better than the market projection which expected a decline of just 2.9 million barrels, following the increase in crude oil inventories recorded in the previous week and making it the first increase since May.
This indirectly paints a good picture for investors who expect global fuel demand to remain strong in the face of the growing threat of Covid-19 and increased production by OPEC+.
In the European session, Brent crude futures traded positive at $ 73.90 a barrel, while US WTI traded up at $ 72.12 a barrel.
Investors are now awaiting official data from the U.S. Energy Information Administration (EIA) on Wednesday to seek confirmation on the reduction in U.S. oil supplies.
