Oil rises on surprise U.S. crude stockpile decline

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Oil rises on surprise U.S. crude stockpile decline
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Oil prices rose on Wednesday, extending strong gains in the previous session, after industry data showed U.S. crude stocks unexpectedly fell last week just as near-term travel demand picked up with COVID-19 pandemic curbs easing.

Brent crude futures were at $85.22 a barrel by 0732 GMT, up 44 cents, or 0.5%, to after rising 1.6% on Tuesday.

According to market sources, API data showed U.S. crude stocks declined by 2.5 million barrels for the week to Nov. 5, defying analysts' estimates for a 2.1 million build in crude stocks in a Reuters poll. Further underpinning the view the market remains tight, trading giant Vitol Group's CEO Russell Hardy said on Tuesday that oil demand had returned to pre-pandemic levels and that the first quarter of 2022 could see demand exceed 2019 levels."The possibility of a spike to $100 per barrel is clearly there," Hardy told the Reuters Commodities Summit.

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