Oil prices rose at the start of Asian trade on Wednesday after industry data showed drawdowns in U.S. crude and fuel stockpiles, raising supply concerns and offsetting worries about slowing demand from top importer China.
Brent crude futures rose 89 cents, or 0.9%, to $105.86 a barrel by 0223 GMT. West Texas Intermediate crude futures rose 97 cents, or 1%, to $103.38 a barrel. The gains come on the back of news from Tuesday that the European Union is working on new sanctions against Russia for waging war on Ukraine that will target Moscow’s oil industry.
European Commission President Ursula von der Leyen is expected to spell out the plans on Wednesday, officials said. In the United States, crude and fuel stocks fell last week, according to market sources citing American Petroleum Institute figures. Crude stocks fell by 3.5 million barrels for the week ended April 29, the sources said, more than an expected 800,000-barrel drop in a Reuters poll.
“The API report had people stop worrying about the demand side and start worrying about the supply side again,” said Phil Flynn, an analyst at Price Futures group. U.S. government data on stockpiles is due on Wednesday.
