Oil settles near $75; sharp U.S. inventory drop counters virus worry | Reuters

Oil settles near $75; sharp U.S. inventory drop counters virus worry | Reuters

Oil settled near $75 a barrel on Wednesday after data showed U.S. crude inventories fell more sharply than analysts had forecast, bringing the market's focus back to tight supplies rather than rising COVID-19 infections.

Crude inventories fell by 4.1 million barrels in the week to July 23, the U.S. Energy Information Administration said. Gasoline and distillate fuel stocks also dropped.

"A rebound in implied demand for both gasoline and distillates, as well as lower refinery runs, has encouraged decent inventory draws for both," said Matt Smith, director of commodity research at ClipperData.

Brent crude settled up 26 cents, or 0.4%, to $74.74 a barrel, after posting on Tuesday its first decline in six days. U.S. West Texas Intermediate (WTI) crude settled up 74 cents, or 1%, to $72.39.

Oil has risen 45% this year, helped by demand recovery and supply curbs by the Organization of the Petroleum Exporting Countries and allies, known as OPEC+.