Oil prices rebounded on Wednesday, snapping three straight sessions of decline, as falling U.S. crude inventories and growing supply risks from wildfires in Canada boosted prices.
Brent crude futures for September rose 37 cents, or 0.5%, to $81.38 a barrel by 0343 GMT. U.S. West Texas Intermediate crude for September increased 38 cents, or 0.5%, to $77.34 per barrel.
WTI had lost 7% over the previous three sessions, while Brent shed nearly 5%. U.S. crude oil, gasoline and distillate inventories fell for the fourth straight week in the previous week, according to market sources citing the American Petroleum Institute (API), reflecting steady demand in the world’s largest consumer of oil.
Wildfires in Canada were also supporting prices. The fires have forced some producers to curtail production and were threatening a large amount of supply, ING analysts said.
“Market is nearing oversold territory and we still believe that the fundamentals support prices moving higher from current levels over the remainder of the third quarter on the back of a deficit environment,” ING analysts said in a note.
