Oil advanced as traders embraced risky assets amid optimism on U.S. debt ceiling talks while awaiting the latest data on U.S. stockpiles.

Crude gained alongside broader equity markets as traders pinned hopes that talks will break a deadlock on raising the U.S. government’s spending limit, averting a potentially catastrophic default. Traders are also awaiting the latest U.S. government stockpile figures due later on Wednesday. 

An industry report saw nationwide inventories rising over 3 million barrels last week while refined products saw drawdowns. 

Crude is down about 11 per cent this year as China’s slower-than-expected recovery, a campaign of aggressive monetary tightening from the Federal Reserve, and more recent concerns over the U.S. debt ceiling weigh on the outlook. Still, U.S. retail sales rose in April, suggesting that consumer spending in the world’s biggest economy is holding up in the face of economic headwinds. 

Prices:

• WTI for June delivery rose 62 cents to $71.48 a barrel at 10:00 a.m. in New York
• Brent for July settlement added 63 cents to $75.54 a barrel.