2018.08.2206:58:00UTC+00Oil Extends Gains After API Data

Oil prices extended gains on Wednesday after an industry group report showed American crude stockpiles fell more than expected last week.

West Texas Intermediate crude for October delivery climbed 88 cents or 1.34 percent to $66.72 a barrel while Brent crude futures were up 1.39 percent at $73.64 a barrel. The September WTI contract expired Tuesday at $67.35.

The American Petroleum Institute (API) reported an extra-large oil inventory draw of 5.17 million barrels of United States crude oil inventories last week, compared to analyst expectations for a draw of 1.497 million barrels.

A weakening dollar also supported oil markets. The dollar held steady in European trade after falling sharply earlier this week following U.S. President Donald Trump's comments on the Fed and trade talks with China.

A breakthrough deal from the lower level trade talks remains very low after Trump said he didn't expect much progress.

Investors are also watching the latest political developments after Michael Cohen, Trump's former personal lawyer, pleaded guilty to campaign finance violations and other charges and Paul Manafort, Trump's former campaign chairman, was found guilty on five counts of tax fraud.