Oil Reaches One-month Highs Thanks to Production Outage and Falling U.S. Supplies

Crude oil prices rose strongly on Wednesday after soaring in U.S. trading session overnight. Both benchmark contracts added another 0.5 percent following a rise of more than 1.5 percent on Tuesday, shooting the prices to the highest level since March 08th.

The rally came amid an unplanned production outage in the North Sea and expectations of a drawdown in U.S. crude and product inventories. Industry trade group American Petroleum Institute on Tuesday reported that crude oil inventories fell by 1.8 million barrels last week. The Energy Information Administration is due to publish official data later on the day, which is expected to show a 200,000 barrel fall in inventories.

Meanwhile, in the North Sea, production of crude oil from Britain’s Buzzard field, which can produce 180,000 barrel per day, was temporarily halted as repair work is carried out at an onshore processing terminal, according to market sources.

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