Oil Prices Rise More Than 2% as U.S. Crude and Products Stockpiles Fall

June 27, 2019

Oil prices rose more than 2% on Wednesday and hit their highest in about a month, lifted by U.S. government data that showed a larger-than-expected drawdown in crude stocks as exports hit a record high, and surprise drops in refined product stockpiles.

Brent crude futures rose $1.44, or 2.2%, to settle at $66.49 a barrel.

U.S. West Texas Intermediate (WTI) crude futures rose $1.55, or 2.7%, to settle at $59.38 a barrel.

Crude inventories fell 12.8 million barrels last week, the Energy Information Administration said, far surpassing analyst expectations for a decrease of 2.5 million barrels. That was the most since September 2016.

Markets will watch the G20 meeting this weekend followed by a meeting of the Organization of the Petroleum Exporting Countries and non-OPEC producers, a group known as OPEC+, taking place on July 1^st and 2^nd.

The group is due to discuss extending output cuts for the second half of this year.

(Reuters)