Oil prices are rising after a drop in US crude stocks

Oil.. Oil prices managed to rise by more than a dollar on Wednesday, extending gains recorded on Tuesday after sector data revealed that US crude stocks fell more than expected last week in the wake of two hurricanes, highlighting tight supplies as demand improved.

By 0643 GMT, the price of West Texas Intermediate crude futures rose 1.08 dollars, or 1.5 percent, to 71.57 dollars a barrel, after increasing 35 cents on Tuesday.

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Brent crude futures rose $1.03, or 1.4 percent, to $75.39 a barrel, after rising 44 cents on Tuesday.

The oil market’s focus shifted to concerns about tight supplies after Monday’s pressure from broader market turmoil linked to a possible default by Chinese real estate developer China Evergrande.

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And market sources, citing data from the American Petroleum Institute, said on Tuesday that US crude stocks fell by 6.1 million barrels in the week ending September 17.
This decline is much larger than the expectations of ten analysts polled by Reuters for a decline in stocks by 2.4 million barrels.

The market is awaiting data from the Energy Information Administration on Wednesday to check for any significant declines in crude and fuel stocks.

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