Oil prices rallied about 1 percent in early Asian trade Friday morning, extending gains from the previous session after data showed US fuel inventories were lower following the winter storms that hit the United States at the end of the year.
Brent crude futures were last added 79 cents, or 1.0 percent, to trade at $79.48 a barrel by 0203 GMT, after rising 85 cents to $78.69 on Thursday.
US West Texas Intermediate (WTI) crude futures also rose 80 cents, or 1.1 percent, to trade at $74.47 a barrel, after ending 83 cents higher at $73.67 in the previous session.
Data from the U.S. Energy Information Administration (EIA) showed Thursday that distillate inventories, which include diesel and heating oil, fell more than expected in the week to December 30.
It fell 1.4 million versus expectations for a 396,000 barrel drop.
Meanwhile, US gasoline stockpiles fell by 346,000 barrels last week, according to EIA data, compared with analyst expectations for a decline of 486,000 barrels.
Service activity in China contracted in December for a fourth straight month amid surging COVID infections, the pace of decline slowed while business confidence rose to a 17-month high.
China, the world’s biggest importer of crude oil, abruptly changed its strict zero-COVID policy in early December following rare public protests, which led to a spike in infections across the country.
