Crude prices rallied after API data showed more then expected downfall in U.S. crude oil inventories.

API reported a drop in US crude oil inventories by 7.2 million barrels last week. Crude stocks at the Cushing, Oklahoma, and delivery hub fell by 1.4 million barrels, the API said, while refinery crude runs rose by 208,000 barrels per day and Gasoline stocks fell by 4.5 million barrels.

Also, declaration by Saudi Arabia’s energy minister that production cut of “1.2 million barrels per day” will be strictly adhered became an important reason for the sharp rally in crude prices in recent days apart from risk on rally.

Looking forward, WTI oil prices have sustain above immediate resistance of $58.7 for further upside towards $60.5 a barrel.

Story by Shelly Airan for