Oil rises after U.S. crude drawdowns, supply tightness | Reuters

Oil rises after U.S. crude drawdowns, supply tightness | Reuters

Oil prices edged higher on Thursday after U.S. crude inventories fell more than expected amid high demand for fuel and OPEC+ agreed to boost crude output to compensate for a drop in Russian production.

U.S. crude oil stockpiles fell last week by 5.1 million barrels to 414.7 million barrels, compared with analysts' expectations in a Reuters poll for a 1.3 million-barrel drop.

Brent futures rose $1.16, or 1%, to $117.45 a barrel by 12:06 p.m. EDT (1606 GMT), while U.S. West Texas Intermediate (WTI) crude rose $1.51, or 1.3%, to $116.77.

Prices, however, were also supported by the European Union's sixth package of sanctions against Russia, approved on Thursday, which will include an immediate ban on new insurance contracts for ships carrying Russian oil and a six month phase-out on existing contracts.