Oil prices extended gains on Wednesday, as a larger-than-expected decline in US crude inventories and escalating geopolitical tension raised investor concerns about tight supplies.
Brent crude futures for June delivery rose 20 cents, or 0.22 percent, to $89.12 a barrel, while US West Texas Intermediate crude futures for May delivery rose 17 cents, or 0.2 percent, to $85.32 a barrel, by 00:15 GMT.
Brent and West Texas Intermediate crude oil rose to their highest levels since October on Tuesday.
US crude oil inventories fell by 2.3 million barrels last week, exceeding analysts’ expectations in a Reuters poll of a decline of 1.5 million barrels. US government data is scheduled to be released later on Wednesday.
On the geopolitical front, a Ukrainian drone bombed one of Russia’s largest refineries in an attack that Russia initially said it repelled.
Russia is facing Ukrainian attacks on oil refineries and has attacked the energy infrastructure in Ukraine. Russia is one of the three largest oil producers in the world and one of the largest exporters of its products.
Elsewhere, Iran said it would retaliate against Israel for the air strike that killed two of its generals and five of its military advisers at its embassy compound in Damascus, raising the risk of further escalation in the conflict in the Middle East.
Also in a reduction in supplies, an internal document seen by Reuters showed that Mexican state energy company Pemex asked its trading unit to cancel up to 436,000 barrels per day of crude exports this month as it prepares to process domestic oil at the new Dos Bocas refinery.
But five OPEC Plus sources told Reuters that a ministerial committee affiliated with the bloc is unlikely to recommend any changes to oil production policy at its meeting on Wednesday.
The dollar also fell against a basket of currencies, which helped support demand for commodities in which it is priced, such as oil.
2024-04-03 02:23:51
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