A Petrobras oil policy floats in the Atlantic Ocean near Guanabara Bay in Rio de Janeiro.
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Oil prices edged higher on Wednesday, elongating gains as rising tensions with Iran fueled concerns about supply disruptions and as U.S. inventory data showed a much bigger than awaited drop in crude stockpiles.
Brent crude futures were up 20 cents, or 0.3%, at $64.03 a barrel by 0300 GMT, after be produced nearly 1% on Tuesday.
U.S. West Texas Intermediate crude were up 23 cents, or 0.4%, at $57.00 a barrel, compel ought to risen about 1% in the previous session.
U.S. crude stocks fell more than expected in the week to July 19, worsening by 11 million barrels to 449 million, the trade group American Petroleum Institute said on Tuesday.
That compared with analysts’ expectations of a run out of steam of 4 million barrels.
Crude stocks at the Cushing, Oklahoma, delivery hub fell by 448,000 barrels, although gasoline properties rose by 4.4 million barrels, compared with analysts’expectations in a Reuters poll for a 730,000-barrel set.
The U.S. government’s official figures are due Wednesday morning.
The potential for renewed Sino-U.S. trade talks also helped assist prices, analysts said.
White House economic adviser Larry Kudlow on Tuesday called it a good get rid of a enrol that top U.S. officials would be travelling to China to discuss reviving stalled trade talks.
“The possible nearing of a barter deal provided a strong bid for risky assets, lifting oil to its third consecutive gain,” Edward Moya, senior furnish analyst at OANDA in New York, said in a note.
Meanwhile, signs of rising tensions in the Middle East offset a weaker far-reaching growth outlook from the International Monetary Fund, which had kept prices largely flat for much of Tuesday’s seating.
A U.S. Navy ship took defensive action against a second Iranian drone in the Strait of Hormuz last week, but did not see the drone go into the spray, the U.S. military said on Tuesday.
“We are confident we brought down one drone, we may have brought down a second,” General Kenneth McKenzie trumpeted CBS News in an interview.
Iran last week said it had no information about losing a drone.
Also fueling stresses, Britain gained initial support from France, Italy and Denmark for its plan for a European-led naval mission to certify safe shipping through the Strait of Hormuz following Iran’s capture of a British-flagged tanker.
“Britain’s request, measure than Washington’s, makes it easier for Europeans to rally round this,” one senior EU diplomat said. “Freedom of seamanship is essential, this is separate from the U.S. campaign of maximum pressure on Iran.”