Oil climbs as industry report points to falling US stockpiles

Oil advanced after four days of losses as an industry report pointed to shrinking US crude stockpiles, offsetting wavering OPEC cuts.

West Texas Intermediate futures rose to trade near $78 a barrel after falling 2% over the previous four sessions. Brent climbed above $82. The industry-funded American Petroleum Institute reported crude inventories slid by 5.5 million barrels last week, people familiar with the data said.

Oil slipped on Tuesday after OPEC said its latest supply cuts had stalled as Iraq produced above its quota for a second month, although benchmark futures have been stuck in a tight trading range this year. US inflation, meanwhile, continues to run hot, muddying the path of monetary policy.

The API figures also showed inventories at Cushing, Oklahoma, the delivery point for WTI, dropping by almost 1 million barrels last week. US government data on crude stockpiles and oil demand is due later Wednesday.

The Energy Information Administration said on Tuesday that US oil production will increase faster than previously expected this year, which will help cushion global supplies as OPEC+ cuts. The EIA made the forecast in its Short-Term Energy Outlook, also raising its output estimate for 2025 by 1.2%.