Crude oil prices were up on Wednesday on more-than-expected US crude oil inventory draw and encouraging macroeconomic data, suggesting a faster economic rebound and increasing oil demand.
International benchmark Brent crude was trading at $45.99 per barrel at 0607 GMT for a 0.89% increase after closing Tuesday at $45.58 a barrel.
American benchmark West Texas Intermediate (WTI) was at $43.16 a barrel at the same time for a 0.94% increase after ending the previous session at $42.76 per barrel.
Late Tuesday, the American Petroleum Institute (API) announced its estimate of a fall of 6.4 million barrels in US crude oil inventories last week, more than the expected 1.9 million-barrel draw, indicating a potential rise in US oil demand.
The US manufacturing sector's economic activity grew at a faster rate in August than it did in July with the Institute for Supply Management’s (ISM) Manufacturing Purchasing Managers' Index (PMI) climbing from 54.2 in July to 56, the highest level since January 2019 and better than the market expectations of 54.5.
The PMI data indicates a faster-than-expected pace of recovery in the US manufacturing sector, which also signals a rise in oil demand to support prices.
The increasing number of COVID-19 cases worldwide, however, is suppressing price rises, implying that global oil consumption is likely to remain low for the rest of the year.
The number of COVID-19 cases worldwide is now close to 26 million, according to the latest data from Johns Hopkins University.
While the US still tops the number of cases with over 6 million as of Wednesday morning, Brazil has more than 3.9 million cases, and India follows with over 3.7 million cases.
By Sibel Morrow