Oil prices climb 1% as U.S. fuel inventories fall

Oil prices climb 1% as U.S. fuel inventories fall

Oil prices recovered slightly on Wednesday as data pointed to firm U.S. fuel demand, providing respite after a 5% drop a day earlier on fears that demand will suffer from increased China COVID curbs and central bank interest rate hikes.

U.S. West Texas Intermediate (WTI) crude futures jumped 82 cents, or 0.9%, to $92.46 a barrel at 0659 GMT, after sliding $5.37 in the previous session driven by recession fears.

Brent crude futures for October, due to expire on Wednesday, climbed 89 cents, or 0.9%, to $100.20 a barrel, trimming Tuesday's $5.78 loss. The more active November contract was up 88 cents, or 0.9%, at $98.72 a barrel.

Supporting market sentiment on Wednesday, data from the American Petroleum Institute (API) showed gasoline inventories fell by about 3.4 million barrels, while distillate stocks, which include diesel and jet fuel, fell by about 1.7 million barrels for the week ended Aug. 26 .

The main factor supporting prices at the moment is talk from members of the Organization of the Petroleum Exporting Countries (OPEC) and allies, together called OPEC+, that they might cut output to stabilise the market. OPEC+ is next due to meet on Sept. 5.

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