TOKYO (Reuters) – Oil prices rose again on Wednesday, extending their rally more than a week after industry data showed a fall in U.S. crude oil stocks added to hopes of an expected rise in global fuel demand.
Brent crude rose 11 cents, or 0.2%, at $ 61.20 before 0110 GMT after rising nearly 1% on Tuesday, when it touched a 13-month high. US crude added 2 cents to $ 58.28.
Crude deposits fell 3.5 million barrels per week to Feb. 5 to about 474.1 million barrels, data from the American Petroleum Institute showed Tuesday.
That compared to analysts ’expectations in a Reuters poll for an increase of 985,000 barrels. Official Energy Information Management (EIA) data is due at 1530 GMT on Wednesday.
“A similar reading to that reported by the API is likely to continue to support the market,” ING Economics said in a note.
Crude oil stocks at Cushing, Oklahoma ‘s delivery point fell 1.4 million barrels, API said.
However, gasoline deposits rose, gaining 4.8 million barrels, compared to analysts ’predictions in a Reuters poll for a buildup of 1.8 million barrels. Official data is expected later Wednesday.
Oil prices have gone up since November as governments launch vaccine campaigns for COVID-19, putting in place major stimulus packages to stimulate economic activity.
The world’s largest exporter, Saudi Arabia, reduced supplies unilaterally in February and March, adding to cuts agreed with other members of the Petroleum Exporting Countries Group (OPEC) and their friends.
Some analysts are now predicting a shortage of supply in 2021 as more people get vaccinated and start going on trips and working in offices, which could stimulate fuel demand.
Reporting by Aaron Sheldrick; edited by Richard Pullin