Oil extended its recovery from a virus-induced slump as a report showing a drop in U.S. crude inventories, a rebound on Wall Street and speculation OPEC+ will step in to prop up prices reassured investors.
The American Petroleum Institute reported stockpiles fell by 4.27 million barrels last week, which would be the biggest drop this year if confirmed by government data due later on Wednesday. That took some attention away from the novel coronavirus, which kept spreading as confirmed cases in China overtook the official number of infections during the SARS epidemic.
West Texas Intermediate for March delivery rose 0.9% to $53.96 a barrel on the New York Mercantile Exchange as of 9:58 a.m. in Singapore. The contract finished 0.6% higher on Tuesday.
Brent for March settlement added 1% to $60.10 a barrel on the London-based ICE Futures Europe exchange after closing up 0.3% on Tuesday. The global crude benchmark traded at a $6.14 per barrel premium to WTI.
Source : Bloomberg