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Gulf Today Report

Oil prices advanced on Wednesday due to an unexpected draw in US crude stockpiles and an OPEC+ estimate of a global oil market deficit this year.

US West Texas Intermediate (WTI) crude futures climbed 24 cents, or 0.4%, to $55.00 a barrel at 04:47 GMT while Brent crude futures rose 26 cents of 0.5% to $57.72 a barrel.

According to analysts the market was afloat due to report by OPEC+ of oil stockpiles likely to decline below five-year average by June.

That indicates the success of producers’ output cut in balancing the market. 

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Lachlan Shaw, head of commodity research at National Australia Bank said, "the strategy was very clear. OPEC and allies set out to cut a deal that would normalise global excess inventory through 2021 - well, they're on track."

Supporting the market is the unexpected fall of the US crude and gasoline inventories. The American Petroleum Institute reported US crude oil inventories fell by 4.3 million barrels in the week to Jan. 29.

Gasoline stocks fell by 240,000 barrels, defying analysts' expectations for a build of 1.1 million barrels, while distillate inventories, which include heating oil and jet fuel, fell by 1.6 million barrels, a bigger draw than expected.