(Bloomberg) -- Oil extended gains from the highest settlement in four weeks after U.S. crude stockpiles declined more than expected.
Futures in New York rose above $73 a barrel after climbing 2.3% on Wednesday. U.S. crude inventories dropped by 4.72 million barrels last week, according to government data, almost twice the median estimate in a Bloomberg survey. Trading volumes have thinned moving into the holiday period, leaving the market susceptible to greater volatility and wild price swings.
Oil is heading for a yearly gain following a strong rebound from the pandemic but there are bearish headwinds mounting for the market including the omicron variant of the virus. However, an energy crunch in Europe and disruptions to supply in Libya and Nigeria have led to some tightening.
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U.S. gasoline stockpiles rose by 5.53 million barrels last week, according to the Energy Information Administration. Crude stockpiles at the key storage hub of Cushing expanded by 1.46 million barrels, climbing for a sixth week.
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