By Gina Lee

Investing.com – Oil was up on Wednesday morning in Asia, with investors continuing to digest a drawdown in U.S. crude supply that raised supply concerns.

By 11:18 ET, $106.03 was the highest level (or 3:18 GMT), while $103.58 rose 1.14%.

These gains resulted after Tuesday’s statement by the European Union that it was mapping out. The sanctions, which come in response to Moscow’s invasion of Ukraine on Feb. 24, will target Russian crude supply. Russia is the world’s second largest crude oil exporter.

European Commission President Ursula von der Leyen is expected to lay out the bloc’s plans later in the day, according to officials.

Tuesday’s showed a draw of 3.479 million barrels for the week ended Apr. 28. Investing.com forecasts a draw at 1.167million barrels. However, a build of 4.780 million barrels was observed during the week before.

Phil Flynn from Price Futures Group, a Price Futures Group analyst, said that API reported made it easier to worry again about supply than demand.

Investors are currently awaiting, which is due later today.

Asia Pacific’s fuel-demand concerns due to ongoing COVID-19 Lockdowns in China led to the black liquor falling by more than 2 percent during the session.

Beijing’s capital is currently mass-testing its residents to prevent a shutdown like the one that was in place for Shanghai this month. The city also closed restaurants, and some blocks of apartments were sealed off.

OPEC+ and its allies will be meeting virtually simultaneously on Thursday.