West Texas Intermediate futures for January delivery advanced to $38.25 (+1.97%), while Brent crude rose to $40.85 (+1.47%).

WTI prices were supported by an unexpected 1.9-million-barrel fall in U.S. crude inventories as estimated by industry group the American Petroleum Institute. Analysts had expected a gain of 252,000 barrels. The Energy Information Administration will release official data later today. Meanwhile analysts said that Brent prices rose mostly due to short-covering, but fundamentals remained bearish (sluggish demand, ample supplies and a strong dollar).