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Oil Rises After API Report

Oil prices rose on Wednesday amid signs of improving demand and a drawdown in U.S. crude inventories.

Benchmark Brent crude for July delivery climbed 26 cents, or 0.75 percent, to $34.91 per barrel, while U.S. West Texas Intermediate (WTI) crude futures for July were up 0.15 percent at $32.01 a barrel.

The June contract expired on Tuesday at $32.50 a barrel, up 2.1 percent from its previous close.

Oil demand in the world's top oil importer, China, has rebounded to pre-coronavirus levels, the Bloomberg reported earlier this week, citing sources.

China was the first to go into lockdown after the Covid-19 virus emerged in Wuhan, but it was also the first country to exit lockdown.

The demand outlook is improving further as several countries across the world ease lockdown measures.

Meanwhile, the American Petroleum Institute reported late Tuesday that U.S. crude supplies fell by 4.8 million barrels to 521.3 million barrels in the week to May 15.

The data also showed gasoline stockpiles edged down by 651,000 barrels, while distillate inventories climbed by 5.1 million barrels.

Official data from the Energy Information Administration (EIA) is due later in the session.

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