Oil prices gain on U.S. fuel drawdown despite rising COVID-19 cases | Reuters

Oil prices gain on U.S. fuel drawdown despite rising COVID-19 cases | Reuters

Oil prices climbed on Wednesday after industry data showed U.S. crude and product stockpiles dropped more than expected last week, bolstering expectations that demand will outpace supply growth even amid a surge in COVID-19 infections.

Brent crude futures rose 38 cents, or 0.5%, to $74.86 a barrel at 0641 GMT, after shedding 2 cents on Tuesday in the first decline in six days.

U.S. West Texas Intermediate (WTI) crude futures were up 42 cents, or 0.6%, at $72.07 a barrel, reversing Tuesday's 0.4% decline.

"Oil prices are riding the tailwind of a weakening U.S. dollar and falling API crude inventories today," said Margaret Yang, a strategist at Singapore-based DailyFX.

"But the upward momentum appears to be weak amid virus concerns and sporadic lockdowns around the world," Yang added.