Oil continues its gains thanks to the decline in US fuel stocks

Oil prices rose about 1 percent on Friday, extending gains from the previous session, after data showed a decline in fuel stocks in the wake of the winter storm that swept the United States at the end of last year.

And by 0203 GMT, Brent crude futures rose 79 cents, or 1 percent, to $ 79.48 a barrel, after rising 85 cents to $ 78.69 when settling on Thursday.

US West Texas Intermediate crude futures rose 80 cents, or 1.1 percent, to $74.47 a barrel. And it had recorded a rise of 83 cents to 73.67 dollars when settling in the previous session.

US Energy Information Administration data on Thursday showed that distillate inventories, which include diesel and heating oil, fell more than expected during the week ending December 30. It decreased by 1.4 million, compared to expectations for a decline of 396 thousand barrels.

The administration also said that US gasoline inventories fell by 346,000 barrels last week, compared to analysts’ expectations for a decline of 486,000 barrels.

While service activity in China contracted in December for the fourth consecutive month amid an increase in COVID-19 infections, the pace of declines slowed while business confidence rose to the highest level in 17 months.

China, the world’s largest importer of crude oil, took a sudden turn in its strict “zero Covid” policy in early December after rare protests there, which led to a surge in infections across the country.