Oil prices gain as US crude stocks decline

Gulf Today Report 

Oil prices jumped on Wednesday following the decline in US crude stocks following rocky demand in Europe due to vaccine woes.

Brent crude futures rose 35 cents, or 0.5%, to $68.74 a barrel by 06:41 GMT while US West Texas Intermediate (WTI) crude futures rose 43 cents, or 0.7%, to $65.21

According to data from the American Petroleum Institute, US crude inventories fell by 1 million barrels in the previous week. It contrasted analysts expectation of 3 million barrels build up. 

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Stephen Innes, chief global market strategist at Axi said, "the market was wrong-footed but still pleasantly surprised after US oil stockpiles unexpectedly fell last week."

Investors are keeping an eye on the outcome of the Federal Open Market Committee meeting.

According to a research note by ANZ, trading in oil futures is now as heavy as it was in the first months of the COVID-19 crisis with oil bulls and bears rushing to hedge against jolts in prices.

 While demand is growing in India and the United States, it remains weak in Europe.