Oil prices hold gains on U.S. stocks drawdown

Oil prices climbed in early Tuesday trade, adding to 2% gains overnight after data showed U.S. crude inventories dropped last week. 

U.S. West Texas Intermediate crude futures rose 0.1%, or 4 cents, at $41.08 per barrel. Brent crude futures gained 0.1%, or 5 cents, at $43.37 per barrel.

Oil markets rose for a third day despite rising COVID-19 cases across Europe, potentially affecting fuel demand.

U.S. crude dropped by 5.4 million barrels, while distillate stocks, including diesel and heating oil, shrank by 3.9 million barrels. The drawdowns were double of what analysts expected.

OPEC and its allies committed to their agreed cuts in September with 102% compliance. The market monitoring panel is set to meet Thursday to assess the oil market.

Oil prices rose this week despite worries about renewed restrictions affecting fuel demand. European COVID-19 cases hit 100,000 daily, compared with 51,000 in the United States.