Crude oil prices moved higher on Wednesday, extending recent gains, and posted an over 8-month high after data showed a fall in U.S. stockpiles last week.
Continued optimism about coronavirus vaccine and a likely pick-up in energy demand further supported oil’s uptick.
The market ignored a report showing a marked increase in the number of oil-rigs in the U.S. this week. According to Baker Hughes, the number of U.S. oil rigs rose by 10 to 241 this week.
Usually, the Baker Hughes report arrives on Friday. However, this week, the data has been released due to the upcoming Thanksgiving Day holiday.
West Texas Intermediate Crude oil futures for January ended up $0.80 or about 1.8% at $45.71 a barrel. Prices rose to a high of $46.26 in the session.
WTI crude futures for January ended with a gain of $1.85 or about 4.3% at $44.91 a barrel on Tuesday.
Brent crude futures were up by about 1% or &0.48 at $48.34 a barrel.
Data released by the Energy Information Administration (EIA) shoed crude inventories in the U.S. dropped by 754,000 barrels last week, as against expectations for an increase of about 127,000 barrels.
The EIA data also showed that inventories at Cushing, Oklahoma, declined by 1.7 million barrels last week.
Traders were also betting on hopes the OPEC and allies will consider extending their output curbs for another few months.