Oil rallies past eight-month high on U.S. crude inventory draw, vaccine hopes | Reuters

Oil rallies past eight-month high on U.S. crude inventory draw, vaccine hopes | Reuters

Oil prices climbed nearly 2% to their highest in more than eight months on Wednesday, as data showing a surprise drop in weekly U.S. crude inventories extended a rally driven by hopes that a COVID-19 vaccine will boost fuel demand.

Brent crude rose 75 cents, or 1.6%, to settle at $48.61 a barrel, its highest since early March.

U.S. West Texas Intermediate crude also closed at its highest since early March, rising 80 cents, or 1.8%, to $45.71.

Both benchmarks, which gained 4% on Tuesday, rose for a fourth straight session.

U.S. crude inventories fell by 754,000 barrels last week, government data showed, surprising analysts who in a Reuters poll had predicted a 127,000-barrel rise. Inventories at Cushing, Oklahoma, the delivery point for WTI, fell by 1.7 million barrels.