%Oil prices are rising after hitting a six-week low on news of a drawdown in U.S. inventories and as wildfires spread in Western Canada.
Brent crude oil, the international benchmark, rose 0.60%, to $81.50 U.S. a barrel.
West Texas Intermediate (WTI) crude oil, the U.S. standard, gained 0.82% to trade at $77.56 U.S. per barrel.
Oil prices have fallen in recent weeks on weaker-than-expected demand due to a soft summer driving season in North America and as the Chinese economy continues to slump.
China is the world’s largest importer of crude oil.
Earlier this week, oil prices closed at their lowest level since June 9 on ceasefire talks between Israel and Hamas.
However, crude prices are now recovering on reports that U.S. crude oil, gasoline and distillate inventories fell for a fourth straight week, according to the American Petroleum Institute (API).
The U.S. inventory drawdown reflects improving demand in the U.S., which is the world’s largest consumer of crude oil.
The latest data marks the first time that crude oil inventories in the U.S. have fallen for four consecutive weeks since September 2023.
Wildfires in Canada’s oil patch that are threatening production have also buoyed crude prices, say analysts.
