Oil Prices Rebound on Shrinking US Crude Inventories

Oil prices rebounded by more than $2 a barrel in early trade on Wednesday after shrinking U.S. crude inventories recouped some of the previous session's losses caused by a pause in fighting between Washington and Tehran.

Brent futures increased by $2.71, or 3.2%, to $86.80 a barrel at 0002 GMT, while U.S. West Texas Intermediate (WTI) crude rose $2.26, or 3.4%, to $81.95.

The decline in U.S. crude inventories was reported by market sources as about 3.3 million barrels for the week ended July 24, citing data from the American Petroleum Institute. Official inventory data from the Energy Information Administration is due later on Wednesday.