Oil prices climb for second day after US stockpiles fall

Oil prices on Wednesday extended the previous day's small gains after an industry report showed U.S. crude stockpiles fell last week, overriding trader and investor concerns about transportation curbs in some countries as COVID-19 cases surge.

Brent crude was 42 cents, or 0.6per cent at US$75.16 a barrel by 0122 GMT, after edging higher on Tuesday. U.S. crude was up 53 cents, or 0.7per cent at US$73.51 a barrel, having risen 0.1per cent in the previous session.While the highly contagious Delta variant of the coronavirus is taking hold in many countries, prompting new lockdowns or movement restrictions from Australia to Portugal, hopes of a broader recovery in demand for fuel remain intact.

"Futures have been trading on a one-way ripper to the upside ever since the November 2 headline declaring a COVID-19 vaccine had been developed," said Bob Yawger, director of energy futures, at Mizuho Securities. But hopes for a broad recovery received a boost from Mohammad Barkindo, Secretary General of the Organization of the Petroleum Exporting Countries , who said on Tuesday that demand is expected to rise by 6 million barrels per day in 2021, with 5 million bpd of that in the second half of the year.

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