Dubai, UAE–Oil prices extended gains on Wednesday after industry data showed a large draw in crude inventories in the U.S., the world’s biggest fuel consumer, and as concerns about a hurricane in the Gulf of Mexico kept investors on edge.
Brent crude futures for October climbed 31 cents, or 0.36%, to $85.80 a barrel by 0415 GMT. The October contract expires on Thursday and the more active November contract was at $85.23 a barrel, up by 32 cents, Reuters reported.
U.S. West Texas Intermediate crude futures gained 38 cents, or 0.47%, to $81.54, logging its fifth session of gains.
Both benchmarks rallied more than a dollar a barrel on Tuesday as the U.S. dollar slid after the prospects of further interest rate hikes eased following softer U.S. job data.
U.S. crude stocks declined by about 11.5 million barrels in the week ended Aug. 25, according to market sources citing American Petroleum Institute figures on Tuesday. Analysts polled by a media outlet prior to the data had estimated on average a draw of 3.3 million barrels.
The bigger-than-expected draw in U.S. crude oil stockpiles is positive for the oil market as it suggest firm demand, said Toshitaka Tazawa, an analyst at Fujitomi Securities Co Ltd.
At the same time, investors bought futures on concerns surrounding Hurricane Idalia, which is churning over the Gulf of Mexico to the east of major U.S. oil and natural gas production sites.
