US Crude Inventories Fall, Boosting Oil Prices

Oil prices rebounded by more than $2 a barrel in early trade on Wednesday due to shrinking US crude inventories.

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

US crude inventories fell by about 3.3 million barrels in the week ended July 24, market sources said on Tuesday, citing data from the American Petroleum Institute.

The prospect of tightening US crude supplies also led OPEC to likely halt oil output increases for three months starting in October, according to sources who told Reuters that the producer group will complete its scheduled return of barrels following voluntary cuts.