Oil nears $75 as U.S. inventory drop counters virus concerns | Reuters

Oil nears $75 as U.S. inventory drop counters virus concerns | Reuters

Oil rose towards $75 a barrel on Wednesday ahead of an industry report expected to show U.S. crude inventories fell, bringing the focus back to a tight supply and demand balance rather than rising coronavirus infections.

Official U.S. Energy Information Administration inventory figures are out at 1430 GMT. On Tuesday, two market sources citing American Petroleum Institute figures said crude stocks fell 4.7 million barrels, more than analysts forecast.

"This price catalyst may inject some much-needed momentum into proceedings, especially after the API set a bullish tone," said Stephen Brennock of broker PVM, referring to the EIA report.

Brent crude rose 41 cents, or 0.6%, to $74.89 a barrel at 1337 GMT, after posting on Tuesday its first decline in six days. U.S. West Texas Intermediate (WTI) crude advanced 48 cents, or 0.7%, to $72.13.