Oil prices resume climb after U.S. stockpiles drop in tight market

Oil prices turned higher on Wednesday, erasing losses from the previous session, after industry data showed U.S. crude stocks fell last week, underlining how tight global supplies are amid the hit to Russian output from economic sanctions on Moscow. Brent crude futures climbed $1.06, or 0.9%, to $116.54 a barrel at 0213 GMT, after falling 14 cents in the previous session. U.S. West Texas Intermediate (WTI) crude futures rose 87 cents, or 0.8%, to $110.14 a barrel, after losing 36 cents on Tuesday. Supply remains tight. The latest data from the American Petroleum Institute industry group showed crude stocks fell by 4.3 million barrels for the week ended March 18, according to market sources, which defied analysts' forecasts for an increase. 

"The U.S. and Saudi Arabia are the two nations that can meaningfully offset the loss of Russia's oil. Extra supply from either seems unlikely right now but we are in a highly unusual situation and that makes everything more fluid," Commonwealth Bank analysts said in a note. Nine analysts polled by Reuters on average had estimated crude inventories rose by 100,000 barrels in the week to March 18.