Oil prices rally on inventory drawdown, casting Omicron caution to the wind By Reuters

Oil prices rally on inventory drawdown, casting Omicron caution to the wind By Reuters
Oil prices rally on inventory drawdown, casting Omicron caution to the wind© Reuters. FILE PHOTO: The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, U.S., November 22, 2019. REUTERS/Angus MordanT/File Photo

By David Gaffen

NEW YORK (Reuters) -Oil prices rose on Wednesday after a larger-than-expected drawdown in U.S. inventories, shaking off worries about the likely hit to economic activity from the spread of the Omicron coronavirus variant.

futures ended the day up $1.31, or 1.8%, to $75.29 a barrel. U.S. West Texas Intermediate (WTI) crude futures settled at $72.76 a barrel, up $1.64, or 2.3%.

U.S. inventories fell more than expected, with crude stocks down by 4.7 million barrels, though that is in part due to year-end tax considerations that encourage companies not to store crude barrels.

“We saw a drop in production, we…

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