Investing.com — Oil prices rose Wednesday, helped by positive European growth data on top of industry data showed an unexpected draw in U.S. inventories.

At 08:00 ET (12:00 GMT), rose 1.1% to $71.53 a barrel, while rose 1.2% to $68.00 a barrel.

Both contracts fell sharply this week after a less severe than feared strike by Israel against Iran helped ease some concerns over a dire escalation in the Middle East conflict.

Economic data in focus 

Helping the tone Wednesday was the release of better-than-expected third quarter growth data from the , raising hope for future economic activity in this important consuming region.

The equivalent data is due from the later in the session, and is expected to show the world’s largest economy, and energy consumer, in solid health.

data – the Federal Reserve’s preferred inflation gauge – and data, a key labor market reading, are due on Friday. 

The prints come before a next week, where the central bank is widely expected to cut rates by 25 basis points. 

In Asia, data from top oil importer China is due on Thursday. A meeting of the country’s National People’s Congress is set for next week and is expected to provide more cues on plans for increased fiscal spending. 

The is set to decide on interest rates on Thursday, amid heightened political uncertainty in the country, while the is set to meet next week.

US inventories see weekly draw – API 

Data from the showed U.S. oil inventories fell 0.57 million barrels in the past week, compared with expectations for a build of 2.3 million barrels.

The reading usually heralds a similar trend in , which is due later on Wednesday, and offered some relief to oil markets, in that it indicated supplies in the world’s biggest fuel consumer were somewhat tight. 

Still, U.S. oil demand is expected to cool in the coming months as the winter season deters travel, while sustained pressure on the economy from sticky inflation and high interest rates is also expected to weigh.

The upcoming presidential elections were also a key point of uncertainty for markets, given that they will determine U.S. policy for the next four years. Donald Trump and Kamala Harris are set for a tight race, with both candidates promising increased U.S. oil production as part of their agenda. 

(Ambar Warrick contributed to this article.)