Crude oil futures are moving higher Wednesday morning, ahead of official inventory data from U.S. Energy Information Administration.
The decision of OPEC and its allies to cut crude production by 1.2 million barrels per day from January 2019 and an unexpected supply cut from a Libyan oilfield are aiding oil's uptick.
The American Petroleum Institute's report, released after trading hours on Tuesday, showed U.S. crude inventories dropped by 10.2 million barrels last week, exceeding forecasts.
Concerns about a likely drop in crude demand have faded slightly following positive news about U.S.-China trade talks are also contributing to oil's rise this morning.
Crude oil futures for January delivery are up $1.00, or 1.8%, at 52.65 a barrel on the New York Mercantile Exchange.
On Tuesday, crude oil futures for January ended at $51.65 a barrel, gaining $0.65, or 1.3% for the session.
Recent data out of China showed the country's crude oil imports to have risen 15.7% year-on-year to a record high of 10.48 million barrels in November. In the event of China managing to strike a deal with the U.S. on trade issues, the figure may go up significantly.
The Energy Information Administration is scheduled to release its weekly crude inventory report at 10:30 AM ET.
Last week's data from EIA showed crude oil inventories in the U.S. to have dropped by 7.3 million barrels to 443.2 million barrels, falling for the first time in eleven weeks.
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