Oil Prices rose on Wednesday after industry data showed U.S. crude inventories drop more than expected, reinforcing views of a tightening supply-demand balance with road and air travel picking up in Europe and North America.U.S. West Texas Intermediate crude futures jumped 33 cents, or 0.5%, to $73.18 a barrel at 0217 GMT, after falling 60 cents on Tuesday. Brent crude futures jumped 42 cents, or 0.6%, to $75.23 a barrel, after giving up 9 cents on Tuesday.
According to two market sources, the American Petroleum Institute industry group reported crude stocks fell by 7.2 million barrels for the week ended June 18. That was a much bigger drawdown than the 3.9 million barrels which nine analysts polled by Reuters had expected on average
Global progress in COVID-19 vaccination campaigns have seen consumer mobility across the U.S., China and Europe recover sharply. However, the prospect of Iranian oil hitting the market in the near term has seen OPEC remain cautious about increasing supply. A retreat in the U.S. dollar from a two-month high hit late last week has also helped prop up Oil Prices, as a weaker greenback makes oil less expensive in other currencies.
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