Oil Edges Higher On API Data

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Oil prices edged higher on Wednesday as China reported a fall in new Covid-19 infections and industry data showed U.S. crude stockpiles fell unexpectedly last week.

Benchmark Brent crude rose 0.6 percent, to $55.96 a barrel, adding to a small gain on Tuesday.

U.S. West Texas Intermediate (WTI) crude futures were up half a percent at $52.88 a barrel, after ending modestly lower the previous day.

China, the world’s second-biggest oil user, is ramping up efforts to neutralize the coronavirus as new outbreaks test its already stringent pandemic strategy.

China reported 75 new confirmed cases of Covid-19 today, the lowest daily rise since Jan. 11, bolstering hopes of a pick-up in demand.

Earlier, there were worries that the outbreak in China will see crude oil demand suffer over the Lunar New Year when hundreds of millions typically travel.

Meanwhile, the American Petroleum Institute (API) reported on Tuesday a draw in crude oil inventories of 5.3 million barrels in the week to January 22. Analysts had predicted an inventory smaller draw of 430,000 barrels for the week.

Gasoline stocks rose by 3.1 million barrels, which was much more than expected.

The material has been provided by InstaForex Company – www.instaforex.com

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