Oil rises on US crude stock drawdown

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Sticker reads crude oil on the side of a storage tank in the Permian Basin in Mentone, Loving County, Texas, US November 22, 2019. REUTERS/Angus Mordant

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July 26 (Reuters) – Oil prices rose in early Asian trade on Wednesday as industry data showed a larger-than-expected drawdown in US crude stockpiles.

US West Texas Intermediate (WTI) crude rose 67 cents, or 0.7%, to $95.65 a barrel by 0009 GMT.

Brent crude futures rose 33 cents, gold 0.3%, to $104.73 a barrel.

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After settlement on Tuesday, industry group the American Petroleum Institute said crude stocks in the United States fell by 4 million barrels last week.

That is four times the 1 million barrel decline expected by analysts in a Reuters poll.

Gasoline inventories fell by 1.1 million barrels compared with expectations of a build of 3.5 million barrels, the API data showed.

The US government’s Energy Information Administration releases its weekly oil report later on Wednesday.

Prices were also lifted by expectations of a tighter gas squeeze in Europe from Wednesday after Russia’s Gazprom (GAZP.MM) said it would cut flows through the Nord Stream 1 pipeline to Germany to a fifth of capacity.

European Union countries on Tuesday approved a weakened emergency plan to curb demand, after striking compromise deals to limit reductions for some countries. read more

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Reporting by Laura Sanicola; editing by Richard Pullin

Our Standards: The Thomson Reuters Trust Principles.

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