Oil climbs on drop in US oil stockpiles, solid demand outlook

Oil climbs on drop in US oil stockpiles, solid demand outlook

MELBOURNE: Oil prices rose on Wednesday, extending overnight gains, after industry data showed a drop in US crude inventories, which reinforced OPEC’s robust demand outlook, and as the shutdown of the biggest US fuel pipeline headed into a sixth day. US West Texas Intermediate (WTI) crude futures rose 21 cents, or 0.3 percent, to $65.49 a barrel at 0013 GMT, adding to a 36 cent rise on Tuesday. Brent crude futures climbed 15 cents, or 0.2 percent, to $68.70 a barrel, adding to a 23 cent gain on Tuesday. “Crude oil gained as investors continue to bet on a bright outlook for demand. A weak US dollar also lent support,” ANZ Research said in a note. Data from the American Petroleum Institute industry group showed US crude oil stocks fell by 2.5 million barrels in the week to May 7, according to two market sources. The drop was slightly less than expected. Eight analysts polled by Reuters had estimated, on average, that crude stocks fell by 2.8 million barrels. The drawdown came before the Colonial Pipeline was hit by a cyberattack last Friday which forced the pipeline, which transports more than 2.5 million barrels a day of fuel, to shut