WTI crude oil continues to trade bullish into Thursday as the mood in oil markets was lifted by the EIA report and hopes for Britain and the EU to work out a post-Brexit trade deal soon. At the time of writing, WTI crude oil is trading at around $48.44 per barrel.

During the previous session, crude oil prices rose over 2% higher after the EIA reported that crude inventories in the US declined by 562k barrels to 499.5 million barrels over the past week. In addition, gasoline stockpiles reduced by 1.1 million barrels to 237.8 million barrels and distillate stocks also declined by 2.3 million barrels to 148.9 million barrels.

Crude oil prices also rose on the back of increased optimism in markets for a narrow trade deal being finalized between Britain and the EU after numerous rounds of negotiations. This has significantly reduced the possibility of a chaotic, no-deal Brexit at the end of this year.

However, gains in oil prices remain limited over ongoing worries about the coronavirus pandemic, especially after the UK reported the discovery of one more new strain. Rising number of cases across the UK have prompted the government to impose tighter restrictions while the US has also cautioned its citizens against traveling during the year-end holidays.