05.08.202010:40:00UTC+00Oil Prices Climb On Significant Crude Draw

Oil prices rose over 2 percent to their higher since March on Wednesday after industry data showed a big drop in U.S. crude inventories.

Benchmark Brent crude jumped 2.3 percent to $45.47 a barrel, while West Texas Intermediate oil futures were up 2.6 percent at $42.80 a barrel.

The American Petroleum Institute on Tuesday said U.S. crude inventories fell 8.6 million barrels to 520 million barrels in the week to 1 August, compared with analysts' expectations for a 3 million barrel drop.

The Energy Information Administration's more closely followed inventories report is due later in the session.

Last week's data from the Energy Information Administration showed crude inventories in the U.S. dropped by 10.6 million barrels, the largest so far in 2020.

Investor sentiment was also boosted by signs that talks between Democrats in Congress and the White House on a new coronavirus relief package are making progress.