Oil extends rally after sudden drop in U.S. crude stockpile

Oil prices climbed again on Wednesday, extending a more than week-long rally after a drop in U.S. crude oil inventories fueled optimism about fuel demand recovery.

Brent crude rose 0.2%, or 11 cents, at $61.20 per barrel following a 1% gain on Tuesday. U.S. crude gained 2 cents to $58.28 per barrel. 

U.S. crude stockpile dropped by 3.5 million barrels to nearly 474.1 million barrels in the week ended Feb 5. The drop contradicted analysts’ expectations for a 985,000-barrel increase.

Crude oil stocks at the Cushing, Oklahoma delivery point fell 1.4 million barrels, according to the American Petroleum Institute. 

Still, gasoline stocks rose by 4.8 million barrels, contrary to analysts’ expectations for a 1.8-million-barrel build.

Oil prices have rallied since November as governments began COVID-19 vaccination drives and released large stimulus aids to support economic activity.