Oil futures rose almost one percent after data revealed an unexpected drop in U.S. crude stocks as imports slid, bolstering the view that the persisting global glut is close to its end.
The U.S. WTI rose 50 cents or 0.9% to trade at $54.09 per barrel. Meanwhile, Brent crude advanced 51 cents or 0.9% at $56.35 per barrel. Despite the rally, both benchmark contracts rose within the tight ranges seen in the last weeks.
Crude stockpiles dropped by 884, 000 barrels in the latest week to 512.7 million, contrary to the expected 3.5 million barrels increase in inventories, API data showed.
The upbeat data on supply further lifted sentiment which rose on OPEC commented that a deal to lower output was exhibiting high levels of compliance.
But analysts said that the market needs to see tangible evidence that OPEC inventories are falling in order for prices to break from their range-bound movement.
OPEC sources were reported stating that eleven non-OPEC producer countries that have participated in the deal have managed around 60% of the pledged cuts so far, a higher compliance rate than initially calculated.
The material has been provided by InstaForex Company – www.instaforex.com