Oil rises over 1% after bigger-than-expected U.S. stock draw

Oil prices rose more than 1% on Wednesday, with U.S. crude climbing for a seventh straight day after U.S. inventories reported a bigger-than-expected drawdown and investors shrugged off a worsening coronavirus pandemic.

U.S. West Texas Intermediate rose 1.3%, or 67 cents, at $53.88 per barrel following a 2% gain on Tuesday. Brent crude gained 1.4%, or 79 cents, at $57.37 per barrel after climbing 1.7% in the last session.

Both contracts are trading at their highest levels since February before the coronavirus outbreak spread across the world and countries went into lockdowns. 

Oil prices were unmoved by the latest developments in the United States and Europe, which are reporting higher daily cases and death toll despite the rollout of vaccines.

U.S. oil inventories fell by 5.8 million barrels to 484.5 million barrels last week, contrary to analysts’ expectations for a 2.3-million-barrel drop.