Oil rises on surprise U.S. crude drawdown, prospect of OPEC action - Reuters

Oil rises on surprise U.S. crude drawdown, prospect of OPEC action - Reuters:

Oil rose about 2.5% on Wednesday after government data showed a surprise draw in U.S. crude stocks and as the prospect of deeper output cuts by OPEC and its allies offered support.

U.S. crude stocks fell 1.7 million barrels last week as refineries hiked crude runs by 429,000 barrels per day (bpd) and oil imports fell, the Energy Information Administration said. Analysts had expected an increase of 2.2 million barrels.

Brent crude futures settled at $61.17 a barrel, up $1.47, or 2.5%. West Texas Intermediate (WTI) crude futures rose $1.49, or 2.7%, to end at $55.97 a barrel.

Oil prices had fallen earlier in the session after data on Tuesday from industry group the American Petroleum Institute showed U.S. crude stocks rising more than analysts’ expectations, by 4.5 million barrels to 437 million barrels.