Investing.com — Oil prices rose on Wednesday, supported by industry data that showed U.S. inventories unexpectedly fell, as well as positive growth data from Europe.
As of 8 a.m. ET (12 p.m. Japan time), the stock was up 1.1% to $71.53 per barrel and 1.2% to $68.00 per barrel.
Both contracts fell sharply this week after Israel's attack on Iran was not as serious as feared, allaying some concerns about a dire escalation in the Middle East conflict.
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The tone was boosted by the release of better-than-expected third-quarter growth data on Wednesday, raising expectations for future economic activity in this important consumption region.
Comparable data is expected to be released later in the session and is expected to show the solid health of the world's largest economy and energy consumer.
Data on the Fed's preferred measure of inflation and a key measure of the labor market are expected to be released on Friday.
The printout is due by next week, when the central bank is widely expected to cut interest rates by 25 basis points.
In Asia, figures from China, the biggest oil importer, are due to be released on Thursday. The National People's Congress is scheduled for next week and is expected to provide further clues about plans to expand fiscal spending.
It is scheduled to decide on interest rates on Thursday and is scheduled to meet next week, given the growing political uncertainty in the country.
US Inventory Draws Weekly – API
U.S. oil inventories fell by 570,000 barrels over the past week, compared to an expected increase of 2.3 million barrels, data showed.
The reading typically heralds a similar trend in , expected later on Wednesday, and could add some to the oil market in that it signals supplies are getting a little tighter in the world's biggest fuel consumer. brought a sense of relief.
Still, U.S. oil demand is expected to cool in the coming months as winter discourages travel, and continued pressure on the economy from persistent inflation and high interest rates will also weigh.
The upcoming presidential election was also a key point of uncertainty for markets, given that it will determine US policy for the next four years. Donald Trump and Kamala Harris are expected to face a close race, with both candidates pledging to increase U.S. oil production as part of their agendas.
(Amber Warrick contributed to this article.)
