Investing.com — Oil prices rose Wednesday, helped by positive European growth data, alongside sector data showing an unexpected drop in U.S. inventories.
At 08:00 ET (12:00 GMT), the stock rose 1.1% to $71.53 per barrel, while it rose 1.2% to $68.00 per barrel.
Both contracts fell sharply this week after a less severe attack by Israel on Iran than feared helped allay concerns about a dire escalation of the conflict in the Middle East.
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The tone was set on Wednesday by the release of better-than-expected third-quarter growth data, boosting hopes for future economic activity in this key consumer region.
The equivalent data will come later in the session and is expected to show that the world’s largest economy and energy consumer is in good health.
Data — the Federal Reserve’s favorite inflation gauge — and data, a key labor market metric, are due Friday.
The figures come ahead of next week, when the central bank is widely expected to cut rates by 25 basis points.
In Asia, the figures for the largest oil importer, China, will be released on Thursday. A meeting of the country’s National People’s Congress is scheduled for next week and is expected to provide more clues about plans for higher budget spending.
The ECB will decide on interest rates on Thursday amid increased political uncertainty in the country, while the committee will meet next week.
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US oil inventories data showed fell 0.57 million barrels last week, compared with expectations for a rise of 2.3 million barrels.
The reading generally heralds a similar trend later on Wednesday, and provided some relief for oil markets in that it indicated supplies were somewhat tight in the world’s biggest fuel consumer.
Still, US oil demand is expected to cool in the coming months as the winter season deters travel, while continued pressure on the economy from persistent inflation and high interest rates is also expected to weigh.
The upcoming presidential elections have also been a major point of uncertainty for markets as they will determine US policy for the next four years. Donald Trump and Kamala Harris face a close race, with both candidates promising increased US oil production as part of their agenda.
(Ambar Warrick contributed to this article.)
