Oil rallies on big drawdown in U.S. crude stocks, strong demand | Reuters

Oil rallies on big drawdown in U.S. crude stocks, strong demand | Reuters

Oil prices rallied on Wednesday after U.S. crude inventories dropped by nearly 5 million barrels and fuel demand rose to an all-time high, underscoring the market's ongoing tightness.

Brent crude futures settled up 77 cents, or 0.9%, to $91.55 a barrel. U.S. West Texas Intermediate crude (WTI) ended up 30 cents to $89.66 a barrel.

U.S. crude stocks fell by 4.8 million barrels last week to 410.4 million barrels, their lowest since October 2018, while overall product supplied, a proxy for demand, hit a record 21.9 million barrels per day over the past four weeks, government data showed.

The heavy activity and ramp-up in U.S. refinery processing augur for a tight market for coming months.