Oil prices move in a positive zone after surprise drop in US stocks

Global oil prices rose in European trade on Wednesday away from recent three-week lows after initial data showed a surprise US inventory drawdown.

Now traders await official US inventory data later today from the EIA. 

Prices

US crude rose 0.45% to $83.67 a barrel, with a session-low at $82.71 a barrel.

Brennt rose 0.4% today to $88.81 a barrel, with a session-low at $87.85. 

On Tuesday, US crude rose 1.5%, while Brent added 1.45% away from recent three-week lows. 

Oil prices were boosted further by the recent dollar’s decline against major rivals. 

US Stocks 

Initial data from the American Petroleum Institute showed a drop of 3.3 million barrels in US crude stocks last week, while analysts expected an increase of 0.8 million barrels. 

It’s the first drawdown in three weeks and a sign for strong demand in the US.

Now investors await official data later today from the EIA, still expected to show a buildup of 1.6 million barrels. 

Global Demand 

Many analysts now expect the European Central Bank and the Bank of England to cut interest rates in June, which would underpin growth and fuel demand.