Oil recovers after inventory drop

WASHINGTON (dpa-AFX) – Oil prices rose more than 2 percent on Wednesday after falling to near three-year lows in New York on concerns about a weak demand outlook.

The upward trend was supported by a weaker dollar and industry data showing a decline in US crude oil inventories.

Benchmark Brent crude futures rose 2.2 percent to $70.70 a barrel after falling below $70 on Tuesday to its lowest level since December 2021.

WTI crude futures rose 2.5 percent to $67.36 after falling to their lowest level since May 2023 as OPEC cut its 2024 oil demand growth forecast for the second time.

A weaker dollar provided some support ahead of U.S. consumer inflation data due later in the day, which could shed light on the extent of the widely expected rate cut by the Federal Reserve at next week’s policy meeting.

Meanwhile, the American Petroleum Institute (API) reported that U.S. crude oil inventories fell by 2.793 million barrels in the week ended Sept. 6, while analysts had expected a rise of 700,000 barrels.

The report found that gasoline inventories fell by 513,000 barrels and distillate inventories rose by 191,000 barrels.

The Energy Information Administration’s weekly oil report is due later today.

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