WTI crude futures rose more than 2% to above $78 per barrel on Wednesday, extending gains for the third session after a government report showed a bigger-than-expected draw in US crude inventories. Stocks of crude oil in the US fell by 5.894 million in the week ended December 16th, way more than market forecasts of a 1.657 million drop, the latest US Energy Information Administration report showed. On Tuesday, the API report pointed to a 3.1 million barrels decline in inventories, exceeding estimates for a 0.2 million barrel drop and compared to the prior week’s 7.8 million barrel build-up.
Elsewhere, oil prices remain buoyed by a strengthening demand outlook in top crude importer China, as the country appeared intent on ending its strict zero-Covid policy and delivering more pro-growth measures centered on reviving consumption. Meanwhile, investors remain cautious as major central banks are expected to tighten policy further, raising the risk of a global economic slowdown next year.
