Oil rose to a four-week high after an industry report signalled a bigger-than-forecast drop in US crude stockpiles, adding impetus to a rally that’s been driven by a tense standoff between Washington and Tehran.
Futures in New York gained as much as 2.3 percent. The American Petroleum Institute reported that inventories fell by 7.55 million barrels last week, according to people familiar with the data. That would be the biggest decline in more than three months. Gasoline futures jumped in New York after Reuters reported that Philadelphia Energy Solutions is expected to close its refinery, the largest on the US East Coast.
Oil has rallied around 15 percent since the middle of the month as escalating tensions in the Middle East have taken over from the US-China trade war as the main price driver.