Oil prices rose in European trade on Wednesday for a second day, almost hitting three-month highs anew after commitments by China to enact stimulus measures to support the economy.
Prices are also boosted by initial data that showed US crude stocks fell with traders awaiting official EIA data later today.
Global Oil Prices
US crude rose 0.7% to $76.29 a barrel, while Brent added 0.8%% to $80.39 a barrel, with a session-low at $79.42.
US crude rose 2.25% on Tuesday, while Brent added 1.6%, resuming gains after moving off three-month highs.
Chinese Commitment
China’s government vowed today to expand local spending in the world’s second largest economy, which could bolster fuel demand.
US Inventories
Initial data from the American Petroleum Institute showed commercial crude stocks fell 0.8 million barrels in the week ending July 14, while analysts expected a drop of 2 million barrels.
It’s the fourth weekly decline in five weeks and a positive sign for demand in the world’s largest fuel consumer.
Now traders await official data from the EIA later today, expected to show a decline of 2 million barrels.
Russian Exports
Russia is expected to cut oil exports by 2.1 million tones in the third quarter of this year in line with pledges of voluntary production cuts in August.