Oil prices on both the sides of the Atlantic built onto the previous gains amid solid Chinese oil imports data and bullish API report, which continued to underpin the sentiment.

Oil on its way to weekly highs

Currently, both crude benchmarks extend gains, with Brent up +1.75% at $ 48.83, while WTI edges +0.50% higher at $ 46.40. Oil prices extend the bullish momentum on the back of upbeat fundamentals, with the latest API report showing the largest weekly drawdown in crude stocks in over three decades.

According to the latest API inventory data, the US crude stocks unexpectedly plunged by 12.1 million barrels last week, compared with expectations for an increase of around 200,000 barrels.

Moreover, upbeat Chinese oil imports data also reflected the case for strengthening demand for the black gold from the world’s second largest oil consumer, which again collaborated to the upside in the prices.

As Reuters reports, China raised its crude oil imports by 5.7% in August on monthly basis, while its August imports marked the first rise in nearly two years.  Looking ahead, focus remains on the official data due to be released from the US government later today for further incentives on the commodity.