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Oil rises on strong factory activity, crude drawdown forecast

Oil prices edged higher on Tuesday as better-than-expected U.S. manufacturing activity data spurred hope for a post-pandemic economic recovery, and as analysts forecast a sixth weekly drawdown in U.S. crude inventories.

Brent crude LCOc1 futures settled up 30 cents at $45.58 a barrel. U.S. West Texas Intermediate futures CLc1 settled at $42.76 a barrel, up 15 cents. Futures extended gains slightly in post-settlement trade after trade group the American Petroleum Institute (API) said U.S. crude stockpiles fell more than expected in the latest week.

U.S. crude inventories were forecast to have fallen by nearly 2 million barrels last week, according to analysts in a Reuters poll ahead of weekly data from the American Petroleum Institute. The group said stockpiles fell by 6.36 million barrels in the week.

Reference: Reuters