10.02.202119:13:00UTC+00Oil Futures Settle Higher For 8th Day As Inventories Drop

Crude oil prices continued to move higher on Wednesday and the most active crude futures contracts extended their gain to an 8th straight session, after data showed a drop in U.S. crude inventories.

Crude oil prices have been surging higher in recent sessions following OPEC's decision to reduce output for another two months, and Saudi Arabia's decision to cut production by 1 million barrels per day.

Also, falling number of new cases of coronavirus infections and the momentum shift in vaccination drive have helped ease concerns about outlook for energy demand.

West Texas Intermediate Crude oil futures for March ended up $0.32 or about 0.6% at $58.68 a barrel.

Brent crude futures gained $0.38 or about 0.6% to $61.47 a barrel.

Data released by Energy Information Administration showed crude inventories in the U.S. fell 6.6 million barrels last week, as against expectations for an increase of 985,000 barrels.

Gasoline inventories increased by 4.259 million barrels last week, nearly 2.5 times more than the expected increase, while distillate stockpiles fell 1.73 million barrels, according to EIA data.

A report released by the American Petroleum Institute late Tuesday showed crude inventories in the United States fell by 3.5 million barrels in the week to February 5, raising hopes about higher fuel demand.