On Tuesday, The American Petroleum Institute (API) data showed that U.S. crude stockpiles dropped more than market expectations last week. At the same time, product inventories, including gasoline, showed an increase.
U.S. crude oil stockpiles declined by 4.8 million barrels for the week ending November 18, compared to the previous week's inventory decline of 5.8 million barrels.
Estimates from economists showed U.S. oil inventories were projected to decline by 2.2 million barrels.
According to sentiment on oil prices, investors are split into two groups. On the one hand, there are rising concerns about the decline in China oil demand amid renewed restrictions related to COVID-19. On the other hand, investors expect that the major producers will continue to reduce oil output.
The U.S. government's report on oil stockpiles will be released on Wednesday. U.S. oil inventories are projected to decline by about 1.1 million barrels last week.