Oil prices rose, snapping a losing streak, after an industry report showed U.S. crude inventories fell for a fourth straight week. Brent crude rose above $81 a barrel after losing nearly 5% in the previous three sessions, with West Texas Intermediate crude nearing $77. The American Petroleum Institute, an industry-funded group, reported a 3.86 million barrel decline, with a draw also seen at the Cushing, Oklahoma, hub.
If confirmed by official figures later Wednesday, the stockpile draw would be the longest since September. While stockpiles typically decline in the third quarter, current levels are below the five-year seasonal average.
Oil’s latest bout of weakness came amid concerns about faltering demand in China, the world’s biggest crude importer, with downward pressure being exacerbated by algorithmic traders. Still, futures have held higher year-to-date as OPEC+ continues to impose production curbs, with a Bloomberg tally of Russian flows showing exports falling to their lowest since December.
On the other side of the supply chain, a series of wildfires in Canada’s oil region have threatened nearly 10% of the region’s oil production. There are 170 fires burning in Alberta alone, with more than 50 of them burning out of control.
