Oil Prices at Five-Month High on Big Drop in U.S. Crude Stocks

Oil prices rose to their highest since early March on Wednesday on a drop in U.S. crude inventories and the weak dollar, but mounting coronavirus infections weighed on the demand outlook.

Brent crude was up $1.50, or 3.4%, at $45.93 a barrel by 1345 GMT, while West Texas Intermediate oil rose $1.51, or 3.6%, to $43.21 a barrel. Both contracts gained over 4% earlier in the session. U.S. crude inventories fell by 8.6 million barrels in the week to Aug. 1 to 520 million barrels, compared with analysts’ expectations for a 3 million barrel drop, the American Petroleum Institute found.

Official figures are due on Wednesday. A weaker dollar, which makes oil cheaper for holders of foreign currencies, also supported prices. “There’s no escaping the benefits of a weaker dollar in the commodity space and oil is certainly basking in its decline,” senior OANDA analyst Craig Erlam said…

View entirety: Reuters