Oil extends gains in Asia, US inventories drop

Oil prices on both sides of the Atlantic remained firm in Asia as investors cheered the drop in the US oil stockpiles. 

At the time of writing, WTI oil was trading 24 cents or 0.5% higher on the day around $49.10/barrel. Brent oil was trading 30 cents or 0.60% higher around $52.10/barrel. 

Oil prices rallied in the North American session after the US Energy Information Administration (EIA) data showed US crude inventories fell 237,000 barrels last week, the first weekly decline after nine straight increases.

Wednesday’s rally was also fuelled by the International Energy Agency (IEA) report, which said demand should overtake supply in the first half of this year. However, the report also said the global oil inventories rose for the first time in six months in January, despite the OPEC agreement.