Oil rises on bigger-than-expected draw in U.S. fuel stocks

Oil prices climbed on Thursday, reversing previous losses, as a bigger-than-expected draw in U.S. gasoline and distillate stocks prompted buying.

The uptick was also supported by expectations that soaring natural gas prices as winter approaches will drive a switch to oil to meet heating demand.

Brent crude futures gained 67 cents, or 0.8%, to $83.85 a barrel at 0647 GMT after falling 0.3% on Wednesday.

U.S. West Texas Intermediate (WTI) crude futures climbed 62 cents, or 0.8%, to $81.06 a barrel, more than recouping the previous day's 0.3% decline, Reuters reported.

The American Petroleum Institute (API) said on Wednesday U.S. crude stockpiles rose by 5.2 million barrels for the week ended Oct. 8, but gasoline inventories fell by 4.6 million barrels and distillate stocks declined by 2.7 million barrels, according to market sources who saw the API data.

Oil prices were also supported by concerns about supply tightness after the U.S. Energy Information Administration (EIA) said on Wednesday that crude oil output in the United States, the world's biggest producer, is going to decline in 2021 more than previously forecast, though it will bounce back in 2022. read more

The OPEC trimmed its world oil demand growth forecast for 2021 in its latest monthly report on Wednesday, while maintaining its 2022 view.