Oil rises thanks to the decline in US inventories amid a winter storm

Oil prices rose on Thursday for the fourth consecutive day as inventories of crude, heating oil and jet fuel grew tighter in the United States as a winter storm swept the country and travel was set to pick up for the holiday season.

And by 0422 GMT, Brent crude futures rose 44 cents, or 0.54 percent, to $ 82.64, extending gains of about 2.7 percent from the previous session. US West Texas Intermediate crude futures rose 49 cents, or 0.63 percent, to $78.78.

Both crude futures jumped on Wednesday after government data showed US crude inventories fell much more than analysts had expected, dropping 5.89 million barrels in the week ending December 16.

Distillate output stocks, which include heating oil and jet fuel, also declined, contrary to expectations for an increase.

The drop in inventories comes as demand for heating oil is expected to rise in light of the severe winter storm sweeping the United States.

Jet fuel consumption is also expected to rise with the post-coronavirus travel recovery and the end-of-year holiday season.

However, demand concerns stemming from rising coronavirus cases in China and concern of a global recession may dampen oil futures.

A senior official at the World Health Organization said on Wednesday that China may have difficulty in accurately counting infections as the country is witnessing a significant rise in cases.