Oil climbs on U.S. crude stocks drawdown

Oil prices climbed in Asian trade on Wednesday after reaching their highest levels in nearly a year in the last session. Prices were boosted by a surprise decline in U.S. crude stocks and an OPEC+ estimate of a global oil market deficit this year. 

U.S. West Texas Intermediate crude futures rose 0.4%, or 24 cents, at $55.00 per barrel for a third consecutive day of gains. The contract hit a one-year peak of $55.26 on Tuesday.

Brent crude futures gained 0.5%, or 26 cents, at $57.72 per barrel for a fourth consecutive day of gains. It hit $58.05 per barrel on Tuesday, its highest since January 2020.

Analysts said the market was underpinned by OPEC’s supply assessment and hopes that oil inventories will drop below a five-year average by June.

U.S. crude oil stocks dropped by 4.3 million barrels in the week ended Jan. 29, contrary to analysts’ expectations for a 446,000-barrel build. 

Gasoline stocks slid by 240,000 barrels, compared with expectations for a 1.1-million-barrel build. Distillate stocks, including heating oil and jet fuel, dropped by 1.6 million barrels.