2021.07.2809:17:00UTC+00Oil Prices Climb After API Data

Oil prices rose about 1 percent towards $75 a barrel on Wednesday after industry data showed U.S. crude and product inventories fell more sharply than expected last week.

Benchmark Brent crude futures jumped 0.9 percent to $74.17 a barrel, after posting their first decline in six days the previous day. U.S. West Texas Intermediate (WTI) crude futures were up 1.1 percent at $72.42 a barrel.

Data from the American Petroleum Institute (API) showed U.S. crude stocks fell by 4.7 million barrels for the week ended July 23, adding to optimism that supplies will remain tight despite the production hikes set by OPEC+.

That compared with analysts' expectations for a 2.9 million fall in crude stocks, following a surprise rise in crude inventories the previous week.

Gasoline inventories fell by 6.2 million barrels and distillate stocks were down 1.9 million barrels, media reports said, citing sources.

Traders await data from the U.S. Energy Information Administration (EIA) later in the day for further direction.

Expectations remain high for EIA crude oil inventory data to confirm inventories resumed their declining trend.

Investors also await the outcome of a Federal Reserve meeting for clues on interest rate policy that could impact the dollar.