(Bloomberg) — Oil extended its longest winning streak in two years in New York as a decline in U.S. crude inventories further showcased how global supplies are draining.
Crude futures edged higher on Wednesday after earlier flipping between gains and losses. A U.S. government report showed domestic oil stockpiles fell by 6.6 million barrels to the lowest since March 2020. Still, the data showed gasoline supplies are at the highest since June.
Oil has climbed more than 9% so far this month as the OPEC+ alliance’s supply curbs, led by Saudi Arabia, continue to deplete global oil inventories. Brent’s nearest timespread has surged — a key sign of market tightness — while swaps tied to the physical North Sea market have also increased amid frenzied trading of derivatives late Tuesday.
West Texas Intermediate crude futures for March delivery rose 13 cents to $58.49 a barrel at 10:34 a.m. in New York. Brent for April settlement gained 24 cents to $61.33 a barrel on the London-based ICE Futures Europe exchange.
There are still concerns that the rally may be overdone, with technical indicators showing crude in overbought territory. Rising prices may also spur American oil explorers to boost drilling and production later this year, the Energy Information Administration said in a monthly report Tuesday.
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