Commodities

Oil Rises as Shrinking US Stockpiles Add to Risk-On Sentiment

  • US crude inventories post first back-to-back drop since March
  • WTI edges higher but remains within tight trading range
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Oil erased earlier losses to close higher, but remained within a tight range as traders weighed shrinking US stockpiles and the outlook for inflation in the world’s largest economy.

West Texas Intermediate edged higher to settle above $79, though the US benchmark has been wedged between about $77 and $82 a barrel this month. US oil inventories fell by 2.5 million barrels last week for the first back-to-back drop since March, taking nationwide holdings to the lowest in almost a month.