Oil Inventories Fell While Traders Reassesing Risk Posed by Omicron

Crude stockpiles in the U.S. fell more than expected last week but product inventories recorded sizeable increase at a time when traders are reassessing the risk for Omicron variant.

U.S. West Texas Intermediate traded at $71.73 a barrel after the news.

Crude inventories fell by 3.1 million barrels for the week ended November 30. That compared with a draw of 747,000 barrels reported by the API for the previous week. Economists were expecting a draw of about 2.1 million barrels.

Gasoline inventories rose by 3.7 million barrels last week, and distillate stocks increased by 1.2 million barrels.

State inventory report is due on Wednesday and expected to show weekly U.S. crude supplies to fall by about 1.7 million barrels last week.