Oil Rises as Stockpile Drop Extends Rally Driven by Risk-On Tone

  • US inventories shrink by 2.55 million barrels, EIA says
  • WTI July futures contract’s expiration may add volatility
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Oil rose as a drawdown in US crude inventories extended a rally that has been supported by a hot streak for equity markets.

West Texas Intermediate’s more-active August contract advanced 0.7% to settle above $81 a barrel. Crude was up early in the session as equities gained, and the commodity touched new intraday highs — even as stocks faded — after government data showed US oil stockpiles declining by 2.55 million barrels. An industry reportBloomberg Terminal on Tuesday had projected a 2.26 million-barrel increase.