Oil extends gains as US inventories decline

Oil soared more than $1 a barrel on Thursday, extending gains from the Wednesday’s session, as lower crude inventories and a rebound in gasoline demand in the United States buoyed prices.

Brent crude futures for September gained $1.20, or 1.1%, to $107.82 a barrel by 0158 GMT, after gaining $2.22 on Wednesday, Reuters reported.

U.S. West Texas Intermediate crude (WTI) was at $98.70 a barrel, up $1.44, or 1.5%, after rising $2.28 in the previous session.

It is noteworthy that U.S. crude oil inventories declined by 4.5 million barrels last week, against expectations for a 1 million-barrel drop, while U.S. gasoline demand advanced by 8.5% (W/W), according to data issued by Energy Information Administration (EIA).