Mubasher: Oil futures traded higher on Wednesday, as they continued to advance after figures released by an industry group showed a much larger than expected drawdown in US crude inventories, Reuters reported.

Helping the gains were the heightened tensions in the Middle East, with the US Navy hinting the possibility of downing a second Iranian drone last week.

By 9:00 am GMT, US Nymex crude futures climbed by 0.56% to $57.09 per barrel (pb), while global benchmark Brent futures rose by 0.30% to $64.03 pb.

Both contracts have gained around 1% in the prior session.

Oil stockpiles in the US fell by 11 million barrels to 449 million in the week ending 19 July, as per reported by the American Petroleum Institute (API) on Tuesday. This came way below a projected decline of 4 million barrels, according to analysts surveyed by Reuters.

The official weekly report pertaining US crude stockpiles is due to be released later in the day.

In addition, more indicators of mounting tensions in the Middle East popped up, after Iran’s Revolutionary Guards seizure of a UK-flagged crude carrier last week, stoking worries about supply disruptions in the Strait of Hormuz, through which around a fifth of the global oil supply passes.

The US said that a Navy vessel “destroyed” a drone in the strategic strait, after it threatened the warship Boxer, as US official told Reuters.

However, oil prices were kept flat by a glooming global growth outlook from the International Monetary Fund (IMF).