Oil edges up on US crude inventory draw

Oil prices edged up on Wednesday morning after three straight days of declines, with market sources citing a decline in U.S. crude inventories, while investor concerns about Russia sanctions and a potential OPEC+ output increase capped gains. Brent crude futures rose 20 cents, or 0.31%, to $64.60 a barrel at 0203 GMT. U.S. West Texas Intermediate crude futures rose 18 cents, or 0.3%, to $60.33. U.S. crude, gasoline and distillate stocks fell last week, market sources said, citing American Petroleum Institute figures on Tuesday. Crude stocks fell by 4.02 million barrels for the week ended October 24, the sources said, requesting anonymity. Gasoline inventories dropped by 6.35 million barrels, while distillate inventories fell by 4.36 million barrels from a week earlier, the sources said. The larger-than-expected draws triggered a short-term price surge during the last trading session, Haitong Securities said in a note. The surprise draws on inventory in the U.S. helped prices this morning, but the interplay of sanctions risks and OPEC+’s posture is driving markets, said Priyanka Sachdeva, senior market analyst at Phillip Nova.