U.S. crude oil inventories fell by 4.4 million barrels in the week ended Oct. 13, compared with a forecast drop of 300,000 barrels, according to market sources citing figures from the American Petroleum Institute on Tuesday. Official US government data will be released on Wednesday.
On the demand side, China’s economy grew faster than expected in the third quarter, official data showed on Wednesday, suggesting that a recent series of measures is helping to shore up a timid recovery.
The data also showed that output from the country’s oil refineries in September hit a record daily rate, up 12% from a year earlier, as refineries ramped up output to meet strong demand for transportation fuel during the Golden Week festivities and the improvement of manufacturing activity.
Meanwhile, higher-than-expected US retail sales in September encouraged expectations of a further rise in interest rates at the end of the year. Raising interest rates to curb inflation can slow economic growth and reduce demand for oil.