yolowire.com - Oil prices have risen as much as 2% on news of a bigger-than-expected drawdown in U.S. crude stockpiles.
The price of Brent crude oil, the international standard, is currently trading at $85.19 U.S. per barrel, having gained 1.6%.
West Texas Intermediate (WTI) crude oil, the U.S. benchmark, has risen 2.6% to trade at $83 U.S. a barrel.
The price increases come after the U.S. Energy Information Administration said oil companies pulled 4.9 million barrels of crude from storage facilities in the week ended July 12.
That was greater than a drawdown of 4.4 million barrels of crude oil expected among energy analysts.
A weaker U.S. dollar is also helping support oil prices after the greenback hit a 17-week low against a basket of international currencies.
A weak U.S. dollar can boost demand for oil by making American-denominated commodities such as crude cheaper for holders of other currencies to purchase.
The inventory drawdown in America and weakening U.S. dollar have offset concerns about slowing economic growth in China, which is the world’s biggest oil importer.
China recently reported second-quarter economic growth of 4.7%, the slowest growth rate since the first quarter of 2023.
While crude oil prices initially fell on news of China’s Q2 economic growth, the inventory drawdown in the U.S. has caused prices to reverse higher.