U.S. crude oil futures rose more than $1 on Wednesday as government data showed an unexpected draw in U.S. stockpiles in the world's largest oil consumer.
West Texas Intermediate (WTI) rose after the U.S. government's Energy Information Administration (EIA) showed domestic crude stocks fell by 5.6 million barrels in the week ended Nov. 29, snapping 10 straight weeks of builds. A Reuters poll had forecast a build of 300,000 barrels.
Brent crude oil futures edged lower after the 12-member Organization of the Petroleum Exporting Countries agreed on Wednesday to renew for the first half of 2014 a collective oil production cap of 30 million barrels a day. This was despite two of its members, Iraq and Iran, having set high output targets for the year ahead.
The EIA data echoed figures from the American Petroleum Institute (API) showing a drop of 12.4 million barrels in domestic inventories. That snapped a 10-week streak of builds that had added nearly 36 million barrels. This followed the news TransCanada Corp would begin operations at its Keystone XL pipeline on Jan. 3, allowing stockpiles of crude oil inventories at the Cushing, Oklahoma,
Brent crude for January delivery shed 70 cents, trading under $112 a barrel, after settling $1.17 higher in the previous session. U.S. crude settled up by $1.16 at $97.20 per barrel, extending Tuesday's big gains.
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