Oil prices extend recovery after US inventory drawdown

Oil prices rose over 2% in European trade away from 11-month lows following a tumble in US crude stocks last week according to initial data. 

Now markets await official US inventory data today form the Energy Information Administration, expected to show a drawdown for the third week in a row.

Global Prices

US crude rose 2.2% to $80.70 a barrel, while Brent added 2.25% to $86.79 a barrel, while US crude rose 3.1%, as Brent added 2.1%, the first profit in three days away from 11-month lows.

US Stocks 

Initial data showed US crude stocks fell 7.9 million barrels in the week ending November 25, the third decline in a row, passing estimates of a 3.2 million drop. 

Total commercial stocks are thus down to 432.7 million barrels, the lowest since the week ending September 2 in a positive sign for demand in the US.

Now traders await official EIA data later today, expected to show a drawdown of 3.2 million barrels. 

OPEC+

OPEC+ countries are expected to convene soon in December, with analysts estimating that weaker demand from China could nudge OPEC+ to cut output once more.

On other news, initial US data on crude inventories will be released today, expected to show a drawdown for the third week in a row, while tomorrow, official data will be released.