Oil climbs as U.S. crude stocks drop, China’s daily coronavirus cases fall

Oil prices rose on Wednesday after U.S. crude inventories slid unexpectedly last week, while China reported its lowest daily new coronavirus cases, boosting hopes for demand recovery.

Brent crude futures rose 0.3%, or 19 cents, at $56.10 per barrel. U.S. West Texas Intermediate crude futures was up 0.4%, or 20 cents, at $52.81 per barrel.

The American Petroleum Institute reported that U.S. crude oil stocks dropped by 5.3 million barrels in the week ended Jan. 22, contrary to analysts’ expectations for a 430,000-barrel build. 

Data also showed that gasoline stocks grew by 3.1 million barrels, while distillate fuel stocks, including diesel and heating oil, increased by 1.4 million barrels, contrary to expectations for a 361,000-barrel drawdown.

Still, prices were boosted by lessening worries about a sudden drop in travel over the Lunar New Year in China.