FX.co ★ Oil Prices Climb As API Reports Crude Drawdown

Oil prices rose about 1 percent on Wednesday after industry data showed a larger than expected draw in U.S. crude stocks.

Benchmark Brent crude futures jumped 0.9 percent to $80.73 a barrel while WTI crude futures were up 0.9 percent at $76.89.

The American Petroleum Institute on Tuesday reported a decrease of 3.1 million barrels of crude oil in U.S. inventories for the week ending Dec. 16 while analysts had expected a drop of 1.7 million barrels for the week.

Gasoline inventories rose by about 4.5 million barrels, while distillate stocks rose by 828,000 barrels.

Oil prices also found some support from a weaker dollar and optimism around China reopening, despite rising COVID cases in the country following the easing of pandemic-related restrictions.

China's crude oil imports from Russia rose 17 percent in November from a year earlier, as Chinese refiners rushed to secure more cargoes ahead of a price cap imposed by the Group of Seven nations on Dec. 5 to limit Moscow's ability to finance the war in Ukraine.

The increase made Russia the top oil supplier for China ahead of Saudi Arabia.