Home / Business / The oil price rises for the second day, supported by the decline in US inventories

The oil price rises for the second day, supported by the decline in US inventories

TOKYO (Reuters) – Oil prices rose a second on Wednesday after data from the industry group showed that US crude oil inventories fell more sharply than expected last week, easing worries over an oversupply on markets in recent sessions ,

Pump Jacks are seen at sunrise near Bakersfield, California, on October 1

4, 2014. REUTERS / Lucy Nicholson

Brent crude rose 54 cents, or 0.7 percent, to $ 73.98 a barrel at 0318 GMT. The global benchmark rose 38 cents on Tuesday to $ 73.44 a barrel, after rising to $ 74.

U.S. West Texas Intermediate rose 24 cents, or 0.4 percent, to $ 68.76 after the previous session closed at 63 cents, or nearly 1 percent.

U.S. Crude oil and fuel stocks fell more sharply last week than expected, the US Petroleum Institute (API) said Tuesday. Reports that China will increase infrastructure spending also helped to dispel concerns that tensions between the US and China will dampen the country's oil needs.

"Prices are rising after API reported a more massive gain than analysts expected," said Stephen Innes, Head of Trading, APAC, Brokerage OANDA.

U.S. Crude oil inventories fell 3.2 million barrels to 407.6 million barrels in the week ending July 20, compared to analyst expectations for a decline of 2.3 million barrels.

Cushing, Oklahoma's crude oil inventory fell by 808,000 barrels, according to the API. Refinery runs decreased by 60,000 barrels a day.

Gasoline shares fell 4.9 million barrels compared to analysts' expectations in a Reuters poll for a decline of 713,000 barrels.

Fuel fuel stocks, including diesel and fuel oil, fell 1.3 million barrels compared to expectations for a 207,000 barrel gain, according to API data.

U.S. Crude oil imports fell 249,000 barrels a day to 8.3 million barrels a day last week.

US Department of Energy Energy Information Management official data is due on Wednesday at 10:30 am EDT (1430 GMT).

Reporting by Aaron Sheldrick; Edited by Joseph Radford and Kenneth Maxwell

Our Standards: The Thomson Reuters Trust Principles.

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