(Bloomberg) -- Oil edged higher in early Asian trading after a surprise drop in U.S. crude stockpiles aided the demand outlook, outweighing the prospect of a return of official oil exports from Iran.
Futures in New York climbed above $90 a barrel after rising 0.3% Wednesday. U.S. crude inventories fell by about 4.8 million barrels last week, according to government data, compared with an expected increase in a Bloomberg survey. Further gains were capped by a flurry of diplomacy preceding the resumption of Iran nuclear talks in Vienna, suggesting sides are trying to close in on a long-sought agreement that could pave the way for more supply.
Oil has rallied over the past seven weeks to the highest level since 2014, putting $100 crude within reach and raising concerns about inflation. OPEC+ has struggled to meet its targeted output pledges as economies rapidly rebounded from the pandemic, leading to a significant tightening of the market.
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Crude inventories at the key Cushing storage hub fell for the fifth week to the lowest level since November, according to data from the Energy Information Administration. The four-week average for supplied oil products -- a gauge for demand -- climbed to a record last week.
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