Oil extends rally as U.S. supplies tighten ahead of demand-heavy holidays.
Oil prices extended gains into a fourth straight session on Thursday after inventory data showed that U.S. supplies remained tight ahead of a demand-heavy holiday season, although caution ahead of key economic readings kept gains limited.
Data on Wednesday showed that U.S. crude inventories shrank far more than expected in the previous week, with decreases in heating oil and jet fuel stocks coming just ahead of an expected increase in travel demand and a potential cold snap at the end of the year.
The inventory declines came even as the government drew down over 3 million barrels of crude from the Strategic Petroleum Reserve, indicating that demand remained robust.
