2020.09.2319:08:00UTC+00Oil Futures Settle Slightly Higher As Inventories Drop

Crude oil futures settled higher on Wednesday, supported by data showing a drop in U.S. crude inventories last week.

However, gains for the commodity were just modest as worries about energy demand outlook persisted amid continued surge in coronavirus cases in several countries and reports of fresh lockdown measures.

West Texas Intermediate Crude futures for November ended higher by $0.13 or about 0.3% at $39.93 a barrel, retreating from a high of $40.75.

Brent crude futures moved up $0.53 or about 1.3% to $42.25 a barrel, but subsequently fell to $41.68 a barrel.

Data released by U.S. Energy Information Administration (EIA) this morning showed crude inventories in the country fell by 1.6 million barrels last week. The drop, however, was less than what markets had expected.

Gasoline stockpiles fell by about 4 million barrels last week, while distillate stockpiles showed a drawdown of 3.4 million barrels.

A report released by the American Petroleum Institute (API) late Tuesday said crude inventories rose by 691,000 barrels in the week to Sept. 18, rather than falling as analysts forecast.