Oil prices jump over $2/bbl after drawdown in U.S. stocks | Reuters

Oil prices jump over $2/bbl after drawdown in U.S. stocks | Reuters

Oil prices rose over $2 a barrel on Wednesday after government data showed a larger-than-expected drawdown in U.S. crude inventories, and on expectations demand will rise as vaccination roll-outs widen.

U.S. crude oil stockpiles fell last week to the lowest since September 2019, the U.S. Energy Information Administration said, extending their drawdown after Hurricane Ida late August shut numerous refineries and offshore drilling production.

Brent crude rose $1.86, or 2.5%, to settle at $75.46 a barrel. U.S. West Texas Intermediate (WTI) crude climbed $2.15, or 3.1%, to $72.61 a barrel.

Earlier in the session, Brent touched $76.13 a barrel, a contract high, and the highest outright price since late July.

"Brent and WTI pricing are up strongly today, back near the peaks we hit earlier in the summer," said Pavel Molchanov, an analyst at Raymond James. "Oil momentum has continued ever since late August following Hurricane Ida as the Gulf of Mexico still struggles to fully restore production."