Investing.com - Crude oil jumped in Asia as industry estimates of US crude supplies offered solid support, but await confirmation from official data from the government later on Wednesday.
On the New York Mercantile Exchange crude futures for December delivery rose 1.46% to $57.66 a barrel, while on London's Intercontinental Exchange, Brent rose 0.57% to $63.06 a barrel.
The American Petroleum Institute (API) said Tuesday that US crude stocks fell by 6.356 million barrels last week. Analysts expected a 1.545 million barrels drop in crude stocks, while distillate stocks were seen down by 1.164 million barrels and gasoline inventories were expected up by 737,000 barrels.
The API data also showed a rise of 869,000 barrels in gasoline stockpiles, while inventories of distillates fell by 1.7 million barrels.
The estimates will be followed by official data from the Energy Information Administration (EIA) on Wednesday.
Overnight, crude oil prices settled higher on Tuesday as traders weighed the prospect of an extension to the production-cut agreement against expectations of higher US output.
Oil prices pared some of Monday’s losses to settle higher amid expectations that the Organization of the Petroleum Exporting Countries (OPEC) will agree to extend output curbs beyond the March 2018 deadline at its upcoming meeting on Nov 30.
In May, Opec producers agreed to extend production cuts for a period of nine months until March, but stuck to production cuts of 1.2 million bpd agreed in November last year.
Some market participants, however, remained uncertain whether Russia will agree to extend output cuts for a prolonged period amid fears that major oil producers who are not part of the pact will ramp up output to gain market share.
Data last week showed U.S. oil producers - not part of the production-cut agreement - ramped up output to record levels, fuelling fears that rising US output will continue to undermine OPEC’s efforts to rebalance oil markets.