WTI crude rises 1.5%, trades at $71.50

Oil rig

Oil prices rose nearly 1.5% on Wednesday, supported by the expectations of a decline in US crude stockpiles.

The international benchmark Brent crude was trading up 1.4% at $74.61 per barrel, at 1.35 pm Makkah time.

WTI crude rose 1.5% to $71.49 per barrel.

American Petroleum Institute data showed that US crude stocks fell by 5.4 million barrels for the week ended on Sept. 10.

Official data on oil inventories is expected later today from US Energy Information Administration (EIA).

Prices also found support from International Energy Agency’s (IEA) projections that global crude demand is expected to see further recovery in the fourth quarter, as COVID-19 vaccination programs continue across the world.

Meanwhile, Tropical Storm Nicholas lashed the US Gulf of Mexico, flooding roads in Texas and Louisiana and knocking out power.

"The impact of Hurricane Ida was a lot greater than many anticipated and production in the Gulf of Mexico region might struggle to return until Tropical Storm Nicholas is done punishing the region with torrential rain," Reuters reported, citing Edward Moya, senior analyst at OANDA.