Oil Prices surged to $75 a barrel ahead of an industry report expected to show U.S. crude inventories fell more than expected. That brings the focus back to a rigid supply and need balance rather than rising coronavirus infections.
U.S. crude stocks fell 4.7 million barrels, two market sources citing American Petroleum Institute figures said, more than analysts forecast. Official U.S. Energy Information Administration inventory figures are out at 1430 GMT. Stephen Brennock of broker PVM noted that this price catalyst might inject some much-needed momentum into proceedings, especially after the API set a bullish tone.
A rising number of coronavirus cases worldwide, despite vaccination programs, has limited the upside for oil and remains a concern. The EIA report from a U.S. Federal Reserve policy meeting due at 1800 GMT will also be in focus. The dollar was firmer ahead of the meeting, which tends to weigh on oil as it makes crude more expensive for other currency holders.