2020.11.0409:57:00UTC+00Oil Prices Rise After API Data

Oil prices rose on Wednesday after industry data showed U.S. crude oil stocks fell sharply last week.

Benchmark Brent crude for January delivery jumped 1.8 percent to $40.42 a barrel, while West Texas Intermediate Crude oil futures for December delivery were up 1.9 percent at $38.39.

The American Petroleum Institute reported late Tuesday that U.S. crude inventories fell by 8 million barrels for the week ended Oct. 30, compared with analysts' expectations for a build of 890,000 barrels.

Gasoline stockpiles rose by nearly 2.5 million barrels, but distillate inventories fell by 577,000 barrels, the report showed.

Crude stocks at the Cushing, Okla., storage hub, rose by 981,000 barrels for the week. Inventory data from the Energy Information Administration will be out later today.

Oil prices also remain supported by optimism over a possible extension of OPEC+ supply cuts.

With the oil market facing a "very dangerous" situation, keeping current cuts into the first half of 2021 could be considered at the next OPEC+ meetings, state news agency APS quoted Algerian Energy Minister Abdelmadjid Attar as saying on Tuesday.

Meanwhile, as hopes of an early and decisive U.S. presidential election outcome fade, a victory by Donald Trump is viewed as bullish for oil because of his hardline stance on Iran.

Final results are expected to take a while because of unprecedented use of mail-in voting during the coronavirus pandemic.