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Oil prices have climbed for the second consecutive day amid falls in the US crude stockpiles.

Brent crude futures climbed 57 cents, or 0.8%, trading at $74.01 per barrel after settling 38 cents higher the previous day, while US West Texas Intermediate increased 27 cents, or 0.4%, to $68.79, Reuters reported.

According to the American Petroleum Institute (API), the US crude and fuel stockpiles declined more than expected for the week ending 20 July.

Due to the fall in inventories, concerns about oversupply eased.

Brokerage Oanda APAC trading head Stephen Innes was quoted by the news agency as saying: “Prices are moving higher after the API reported a more massive draw than analysts had expected.”

“Venezuelan oil production has already plummeted to a new 30-year low of 1.5 million barrels a day in June.”

Innes stated that prices have also been supported by a report released by the International Monetary Fund about rising inflation in Venezuela, affecting its oil output.

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By GlobalData

He added: “Venezuelan oil production has already plummeted to a new 30-year low of 1.5 million barrels a day in June.”

US crude stockpiles dropped 3.2 million barrels last week to 407.6 million barrels, beating analyst expectations for a decrease of 2.3 million barrels, while crude stocks at the Cushing, Oklahoma, delivery hub declined by 808,000 barrels.

The API also stated that refinery crude runs fell by 60,000 barrels per day and gasoline stocks dipped 4.9 million barrels.