Oil rises for second day as U.S. crude inventories fall

LONDON (Reuters) – U.S. crude inventories fell more than expected last week, easing worries on oversupply.

Global Brent crude benchmark was up 50 cents, 0.7 percent gold, at $ 73.94 a barrel by 0805 GMT, after gaining 0.5 percent on Tuesday.

U.S. light crude was 5 cents higher at $ 68.57, having risen nearly 1 percent in the previous session.

U.S. The American Petroleum Institute (API) reported late on Tuesday.

"The Apiary API figures set a positive tone for the gasoline, which is seasonally the focus of the season," Harry Tchilinguirian, oil strategist for French bank BNP Paribas, told the Reuters Global Oil Forum.

U.S. crude inventories fell by 3.2 million barrels in the week to July 20 to 407.6 million barrels, the API said, compared with analysts expectations for a decrease of 2.3 million barrels.

Crude stocks at the Cushing, Oklahoma, delivery hub fell by 808,000 barrels. Gasoline stocks fell by 4.9 million barrels, compared with analysts expectations in a Reuters poll for a 713,000 barrel drop. [API/S]

Official figures from the US Department of Energy's Energy Information Administration will be published at 10:30 AM EDT (1430 GMT) on Wednesday.

"Prices are moving higher after the API reported a more massive draw than analysts had expected," said Stephen Innes, trader at OANDA brokerage.

Sentiment was also supported by an International Monetary Fund report on inflation skyrocketing in Venezuela, innes said.

"Venezuelan oil production has already plummeted to a new 30-year low of 1.5 million barrels a day in June," he said.

Oil prices have come under pressure from the United States and China, and have increased the possibility of slowing economic growth and lowering global demand for higher tariffs.

But the global economy is still moving strongly and it is not clear how the trade dispute may impact business.

Reports that China will increase the importance of the United States.