Oil futures are rising after US oil inventories dropped more than expected.
The price of West Texas Intermediate crude oil futures rose slightly Wednesday morning, about 0.48% to $US43.70. The US crude oil inventories fell 2.451 million barrels, compared to the 2.106 million expected, according to the Energy Information Administration.
This was a slight relief for investors. Oil prices have been plummeting on a steady drone of supply increases across the globe. The price of oil hit a 7-month low Tuesday. Libya’s production has been rising in recent weeks, sending general OPEC production higher. OPEC countries decided to cut production through 2018 to combat the supply glut, though not as much as speculators had hoped.
Bank of America said oil was on such a downtrend that it could hit $US30 a barrel soon.
This week’s draw on US inventories was higher than last week’s. Investors were disappointed by the 1.66 million barrel reduction last week.
WTI crude oil futures are down 10.8% this year. The continuing declines crossed over the mark for a bear market on Tuesday of this week.
Brent oil futures are down 22% this year but were seeing similar increases of around 0.33% Wednesday after the new data.
Get the latest Oil WTI price here.