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New York’s main contract, light sweet crude for delivery in January rose 40 cents to US$88,33 a barrel and Brent North Sea crude for February delivery advanced six cents to US$108,90.
Traders were heartened by data released by the American Petroleum Institute late on Tuesday showing a sharper-than-expected fall in US stockpiles, said Nick Trevethan, senior commodities strategist at ANZ Research.
“API crude stocks dropped over four million barrels, which should support oil prices,” he told AFP.
The fall was far steeper than the 1,7 million to 2,3 million barrel drawdown projected by various analysts.
A fall in US crude inventories indicates a pick-up in energy demand in the world’s largest oil consumer.
The US Department of Energy was due to issue its weekly inventory report later yesterday.
Confidence has also been boosted by hopes of a breakthrough in Washington on averting the fiscal cliff of tax hikes and spending cuts due to come into effect at the start of January. — AFP.
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