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Gulf Today Report

Oil prices rose over 1% on Wednesday following a report stating that US crude inventories have declined beyond expectations.

Brent crude futures were up 48 cents, or 1.1% to $44.09 a barrel at 04:45 GMT. US West Texas Intermediate (WTI) crude futures also rose 48 cents, or 1.2%, to $41.84 a barrel. Both benchmarks gained nearly 3% on Tuesday.

Crude stockpiles declined by 5.1 million barrels last week according to data showed on Tuesday.

Analysts have had expectations for a reduction of 913,000 barrels. 

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"Defying analysts' expectations again, the American Petroleum Institute (API) reported on Tuesday a significant 'draw' in crude oil inventories," said Stephen Innes, chief market strategist at AXI.

The initial trial data of Pfizer Inc and BioNTech that confirmed 90% effectiveness of the vaccine has aided in boosting both Brent and US oil prices above 10% this week.

Fresh lockdowns in Europe and restrictions in the United States has reduced the pace of fuel demand recovery, affecting Asian economies where consumption has almost returned to pre-COVID levels.