2018.08.3006:36:00UTC+00Oil Extends Gains After Stockpile Drop

Oil prices rose on Thursday to extend gains from the previous session on signs of lower U.S. fuel inventories and expected supply disruptions from Iran and Venezuela.

Benchmark Brent crude oil was up 32 cents or 0.41 percent at $77.78 a barrel while U.S. light crude oil futures were 24 cents higher at $69.73 a barrel.

The Energy Information Administrations' latest weekly petroleum status report released on Wednesday showed that U.S. commercial crude inventories fell by 2.6 million barrels in the week to Aug. 24.

A day before, the API report showed that crude inventories rose by just 38,000 barrels in the week.

Iran's crude oil and condensate exports are set to drop to a total of 64 million barrels this month as key customers have all scaled back purchases after the announcement of first round of U.S. sanctions.

The oil market is set to tighten further before the end of this year due to strong demand and uncertainty of production, as Venezuelan production is collapsing and is expected to slide further in the coming months.

The Organization of the Petroleum Exporting Countries will discuss in December whether it can compensate for a sudden drop in Iranian supply after sanctions against Tehran start in November.