2020.07.0210:14:00UTC+00Oil Prices Rise On Bullish Inventory Data

Oil prices rose on Thursday to extend gains from the previous session as a strong drawdown in crude stockpiles outweighed concerns the worst of the coronavirus isn't yet over.

Benchmark Brent crude rose about 1 percent to $42.44 a barrel, after climbing 1.8 percent on Wednesday. U.S. West Texas Intermediate (WTI) crude futures were also up 1 percent at $40.21 a barrel, after a 1.4 percent rise in the previous session.

Data released by U.S. Energy Information Administration on Wednesday showed crude inventories in the country fell by 7.2 million barrels in the week ended June 27, compared with an increase of 1.4 million barrels a week earlier.

The amount of oil stored at Cushing, Oklahoma, to settle WTI delivery fell a larger than expected 263,000 barrels and distillate stockpiles dropped by 593,000 barrels, but gasoline inventory rose 1.2 million barrels last week, the data showed.

A day earlier, the American Petroleum Institute estimated a major draw in crude oil inventories of 8.156 million barrels for the week ending June 26, against analysts' forecasts for a draw of 710,000 barrels.

Positive macroeconomic data flow and hopes of a vaccine for Covid-19 also proved supportive, offsetting concerns surrounding a spike in U.S. coronavirus infections and revived lockdown measures in California.