Oil rises over surprise dip in U.S. crude inventory

Oil prices edged up on Wednesday, extending the previous session’s strong gains after industry data showed an unexpected decline in U.S. crude stocks last week.

U.S. West Texas Intermediate crude futures picked up 23 cents, or 0.3%, to $84.38 per barrel at 0132 GMT. The benchmark contract was up 2.7% on Tuesday.

Brent crude futures added 0.4%, or 36 cents, to $85.14 per barrel following a 1.6% increase on Tuesday.

A tighter global oil supply has contributed to strong crude prices during the past months. The latest data from the American Petroleum Institute (API) strengthened the view that supply remains limited.

Market sources also disclosed that API data showed a 2.5-million-barrel decline in U.S. crude stocks for the week to November 5.

The market will be waiting for data from the U.S. Energy Information Administration, due on Wednesday, to see if it confirms the drawdown in crude stocks.