Oil climbs as U.S. inventory draw, Brexit deal hopes boost risk appetite | Reuters

Oil climbs as U.S. inventory draw, Brexit deal hopes boost risk appetite | Reuters

Oil extended gains on Thursday in light holiday trade as a drop in U.S. stockpiles spurred demand hopes, while hints of an imminent Brexit deal underpinned investors’ risk appetite.

Brent crude futures rose 17 cents, or 0.3%, to $51.37 a barrel by 0745 GMT, while U.S. West Texas Intermediate (WTI) crude increased 10 cents, or 0.2%, to $48.22.

Both contracts gained more than 2% on Wednesday.

“Lower U.S. inventories of crude and fuels as well as signs of a potential Brexit deal which led to weaker U.S. dollar were good news,” said Hiroyuki Kikukawa, general manager of research at Nissan Securities.

“But lingering worries over a new variant of the novel coronavirus capped gains,” he said, adding that oil markets were quiet with investors in holiday mode.