Price action
Brent crude futures rose nine cents, or 0.1 percent, to $88.51 a barrel by 0031 GMT. US West Texas Intermediate crude futures also increased ten cents, or 0.11 percent, to $83.45 per barrel.
American Petroleum Institute figures reported a decline in US crude inventories by 3.237 million barrels in the week ending April 19. On the other hand, six analysts polled by Reuters expected an increase of 800,000 barrels.
Traders are awaiting official US data on oil and product inventories scheduled to be released at 10:30 a.m. US time (1430 GMT) to confirm the significant decline in inventories.
Meanwhile, expectations are growing that the UK and EU will cut interest rates in June, which could help support economic growth and thus increase demand for oil.
Business activity in the euro zone and the United Kingdom grew this month at the fastest pace in almost a year, indicating that economic growth “continues to gain momentum,” Capital Economics said in a note.
Traders largely ignored the latest developments in the Middle East in early trading on Wednesday, with residents saying Israel had intensified its strikes across Gaza, in some of the heaviest waves of bombing in weeks.
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