Oil gains after U.S. crude stocks plunge

Oil prices rose on Wednesday after U.S. crude inventories fell more than expected, hinting at an improving demand amid the resurgence of coronavirus.

Brent crude gained 0.8%, or 33 cents, at $41.60 per barrel. U.S. crude added 1.1%, or 42 cents, at $39.69 per barrel.

Both U.S. crude and gasoline stocks fell more than expected last week, while distillate inventories grew. 

Crude stocks declined by 8.2 million barrels to 537 million barrels, according to the American Petroleum Institute.

Still, gains are likely to be limited due to higher supply and weakened demand. Analysts say that oil prices will consolidate at $40 per barrel this year.

Coronavirus cases are still rising around the world, with total infections at 10 million and deaths at half a million.

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