Oil Jumps on Report of Falling U.S. Stockpiles and Iran Tension - Bloomberg

Oil Jumps on Report of Falling U.S. Stockpiles and Iran Tension - Bloomberg:

Oil jumped the most in a week as an industry report showing a continued draw-down in U.S. crude inventories tightened a supply outlook that’s being threatened by rising tension in the Middle East.

Futures in New York rose as much as 1.8% after closing up 0.3% Tuesday. The American Petroleum Institute reported nationwide stockpiles fell by 8.13 million barrels last week, according to people familiar with the data. That’s more than the median estimate for a 2.9 million barrel drop in a Bloomberg survey before Energy Information Administration figures due Wednesday.

West Texas Intermediate crude for August delivery gained 91 cents, or 1.6%, to $58.74 a barrel on the New York Mercantile Exchange as of 7:40 a.m. in London after rising as much as $1.01 earlier. The contract has rallied 4.4% since last Tuesday’s close.

Brent for September settlement increased 71 cents, or 1.1%, to $64.87 a barrel on the ICE Futures Europe Exchange. The contract closed 0.1% higher on Tuesday. The global benchmark crude traded at a $6.01 premium to WTI for the same month.