12.08.202019:30:00UTC+00Crude Oil Prices Spike After Decline In Inventories

Oil prices rallied on Wednesday after industry data showed that U.S. inventories of crude fell more than analysts expected, raising hopes of a recovery in global oil demand.

Benchmark Brent crude rose 95 cents or 2.14 percent to $45.44 a barrel, after falling about 1 percent in the previous session. West Texas Intermediate crude futures were up $1.07 or 2.56 percent at $42.70, after having declined 0.8 percent on Tuesday.

The American Petroleum Institute reported late Tuesday that U.S. crude stocks fell by 4 million barrels last week, beating expectations of draw of 2.9 million barrels.

The API data also showed gasoline stockpiles declined by 1.3 million barrels, while distillate inventories fell by 2.9 million barrels.

Then earlier today, the Energy Information Administration said inventories fell 4.5 million barrels last week.