Oil extends gains supported by US demand

Oil drilling rigs

Oil prices extended gains at the close of trading today, Aug. 27, following a larger-than-expected decline in US crude inventories, indicating resilient demand in the world's largest economy.

Brent crude futures for October delivery rose 1.23%, or 83 cents, to $68.05 a barrel at the end of trading.

WTI crude oil futures for October delivery jumped 1.42%, or 90 cents, to $64.15 a barrel.

Data from the Energy Information Administration today revealed that US crude oil inventories fell by 2.4 million barrels last week, exceeding expectations for a 1.9 million barrel decline.

Gasoline inventories also fell by 1.2 million barrels, reflecting strong demand as consumers prepare for the Labor Day holiday travel season in the US.