Wednesday morning, the oil price is on the rise with investors embracing risk assets and estimates showing another pull from US oil inventories, writes Bloomberg News.

A barrel of European benchmark oil, Brent, cost USD 83.68 Wednesday morning against USD 82.44 Tuesday afternoon. The US benchmark, WTI, traded at USD 81.26 against USD 79.89 Tuesday afternoon.

Oil association American Petroleum Institute reported Tuesday evening CET that US oil inventories dropped by approximately 1 million barrels last week, writes Bloomberg News citing insiders familiar with the figures.

Tuesday evening, the US benchmark WTI closed at the highest level since Nov. 11.

The rally coincides with price increases for other commodities as well as on the stock market after the US Federal Reserve's Chair, Jerome Powell, tried to reassure investors that the Fed can rein in inflation without harming the US economy. If successful, it would ensure oil demand, according to Bloomberg News.

The oil price has roared ahead since the beginning of the year, not least due to abating concerns about the pandemic as well as supply disruptions for several members of the Organization of the Petroleum Exporting Countries (OPEC) and its allies in OPEC+.

"There are a lot of supply factors, and Omicron fears are ebbing. The market will remain tight a for while. Wherever the market is right now, it has only just started to reflect oil's actual value, and it could continue," says economist at Singapore-based Oversea-Chinese Banking Howie Lee to Bloomberg News.

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