Oil extended gains from the highest close in more than three years as U.S. industry data signaled crude stockpiles dropped an eighth week.
Futures climbed as much as 0.9 percent in New York after rising 2.5 percent the previous two sessions. Inventories fell by 11.2 million barrels last week, the American Petroleum Institute was said to report on Tuesday. If the draw is replicated in Energy Information Administration data Wednesday, it will be the biggest decline for this time of the year since 1999.
Oil is continuing its advance after a second annual gain as the Organization of Petroleum Exporting Countries and its allies trim supply to drain a global glut. The OPEC-led group is facing the challenge of rising U.S. crude output, which is forecast by the EIA to expand above 10 million barrels a day as soon as next month and top 11 million in November 2019.
West Texas Intermediate for February delivery rose as much as 57 cents to $63.53 a barrel on the New York Mercantile Exchange, and was at $63.45 at 7:27 a.m. in Hong Kong. Total volume traded was about 13 percent below the100-day average. Prices gained $1.23 to $62.96 on Tuesday, the highest close since December 2014.
Brent for March settlement climbed $1.04, or 1.5 percent, to $68.82 a barrel on the London-based ICE Futures Europe exchange on Tuesday, also the highest close since December 2014. The global benchmark crude ended the session at apremium of $5.95 to March WTI.
Source : Bloomberg