TOKYO (Reuters) – Oil prices rose on Thursday, holding onto a late-session rally the previous day, buoyed by the U.S. government data showing a surprise drawdown in crude stockpiles.
U.S. West Texas Intermediate crude for May delivery Front-month London Brent crude Before the rebound late on Wednesday, after the release of the Energy Information Administration (EIA) inventory data, WTI and Brent had hit two-week lows after China proposed a broad range of tariffs on U.S. exports, feeding fears of a trade war. U.S. crude inventories fell by 4.6 million barrels last week, compared with analysts’ expectations for an increase of 246,000 barrels, EIA data showed on Wednesday.
Gasoline stocks fell by 1.1 million barrels, compared with analysts’ expectations for a 1.3 million barrels drop. Distillate stockpiles, which include diesel and heating oil, rose by 537,000 barrels, versus expectations for a 1.1 million barrels drop. Oil has also received support from a turnaround in the U.S. stock market and a Reuters survey showing OPEC oil output fell in March to an 11-month low due to declining Angolan exports, Libyan outages and a further slide in Venezuelan output. Shanghai September crude futures (Reporting by Osamu Tsukimori; Editing by Aaron Sheldrick)
