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Brent crude futures rose 65 cents, or 0.7%, to $92.20 a barrel
at 1140 GMT, while U.S. West Texas Intermediate crude was at
$90.64 a barrel, up 98 cents, or 1.1%.
Robust demand recovery from the coronavirus pandemic has kept
global oil supplies snug, with inventories at key fuel hubs
globally hovering at multi-year lows.
U.S. crude inventories fell 4.8 million barrels in the week to
Feb. 4, dropping to 410.4 million barrels - their lowest for
commercial inventories since October 2018, the Energy
Information Administration said. Analysts in a Reuters poll had
forecast a 369,000-barrel rise.
U.S. product supplied - the best proxy for demand - peaked at
21.9 million barrels per day (bpd) over the past four weeks due
to strong economic activity nationwide, EIA data showed.
"We are seeing some consolidation after a fairly constructive
EIA report," said Warren Patterson, ING's head of commodities
research.
However, investors are closely watching the outcome of U.S.-Iran
nuclear talks which resumed this week. A deal could lift U.S.
sanctions on Iranian oil and ease global supply tightness.
The White House publicly pressured Iran on Wednesday to revive
the 2015 Iran nuclear agreement quickly, saying that it will be
impossible to return to the accord if a deal is not struck
within weeks.
"The core uncertainty remains whether Iran is willing to sign on
the dotted line," Eurasia analyst Henry Rome said, adding that
the consultancy was holding onto a 40% call on a return to the
agreement.
"Any quick deal would likely put some further downward pressure
on prices, as it would help alleviate some concerns over the
lack of spare OPEC capacity," he added.
(Additional reporting by Florence Tan; Editing by Raju
Gopalakrishnan, Emelia Sithole-Matarise and David Evans)
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