Oil prices reached $46 a barrel on Wednesday, posting a three-day consecutive gain in response to the report of lower U.S. crude inventories and stronger manufacturing, raising hopes for a recovery from the plummet of price war and the coronavirus outbreak.
Brent Crude briefly reached $46.05 per barrel while the U.S. WTI hit the day high at $43.21 per barrel.
The American Petroleum Institute (API) stated that U.S. crude stocks fell by 6.4 million barrels, which was more than forecasted at 1.9 million barrels. The U.S. government’s Energy Information Administration will announce its official figure later in the day as investors hope that the numbers will match.
The prices were also buoyed by a supply cut by the Organization of the Petroleum Exporting Countries and allies, a grouping known as OPEC+. However, Reuters stated that OEPC had raised its production by 1 million in August as demand started to recover.