Prime News: Oil Rallies on Unexpected Drawdown in U.S. Crude Stockpiles

Oil prices edged up on Thursday, clinging to a late-night session gain in the previous day, lifted by the U.S. government data showing a surprise drawdown in crude inventories.

U.S. WTI crude for May, 19 cents higher or 0.3 percent, trading $63.56 per barrel after closing 14 cents down. Brent crude for June delivery was up 20 cents or 0.3 percent at $68.22 per barrel, having settled 10 cents lower.

Ahead of the recovery in prices late on Wednesday, following the publication of the Energy Information Administration EIA inventory data, WTI and Brent contracts have hit two-week lows after China proposed a broad range of new charges on U.S. exports, stoking concerns of a trade war.

U.S. crude stockpiles declined by 4.6 million barrels in the previous week, against analysts’ expected 246, 000 barrels build, EIA data showed.

Gasoline stocks declined by 1.1 million barrels, against analysts’ expected 1.3 million barrel drawdown. Distillate stockpiles increased by 537, 000 barrels, against an expected 1.1 million barrels decline.

Oil prices were also buoyed by a recovery in the U.S. stock market and a survey by Reuters showing OPEC oil production declined in March to an 11-month low due to falling Angolan exports, Libyan outages and a further drop in Venezuela production.

The material has been provided by InstaForex Company – www.instaforex.com

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