Oil buoyed by bullish API report

US oil prices strengthened in Asia after the American Petroleum Institute (API) data released overnight in the US showed a bigger draw in the inventories.

At the time of writing, WTI oil was trading 0.76% or 36 cents higher at $47.80/barrel. Across the pond, Brent oil was trading largely flat around $49.20/barrel.

Prices rallied on Wednesday after a two-day losing streak. US oil extended gains in Asia after API data showed oil inventories fell by 6.7 million barrels in the week to July 1 to 520.9 million, compared with analysts' expectations for a decrease of 2.3 million barrels.

The focus today is on the US government’s weekly inventory report release. Markets expect a drop in the inventories for a seventh straight week and could be accompanied by a drawdown in the gasoline inventories as well.