The latest EIA report showed that US crude stocks fell by about 3.1 million barrels last week, defying expectations for a build of 367,000.
Still, concerns mount that rising interest rates will eventually drag developed economies into a recession, thus curbing oil consumption.
On the supply side, OPEC+ has recently agreed to cut production by 2 million barrels per day in November, the most since the pandemic, while speculation grows that the brent crude oil cartel will further intervene in markets to shore up prices.
Meanwhile, Saudi Arabia has shared intelligence with the US, warning of an imminent attack from Iran on targets in the kingdom. A conflict in the region could remove millions of barrels from the global market.
While US crude oil inventories fell by 3.115 million barrels in the week ended October 28th, compared with market expectations of a 0.367 million barrel increase, the latest US Energy Information Administration report showed.
Also, gasoline stocks declined by 1.257 million, less than market expectations of a 1.358 million draw. On the other hand, crude stocks at Cushing, Oklahoma, went up by 1.267 million barrels, following a 0.667 million build; and distillate stockpiles, which include diesel and heating oil, increased by 0.427 million, versus forecasts for a 0.56 million drop.