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Oil adds to overnight gains after U.S. crude drawdown

Published 07/21/2016, 03:55 AM
© Reuters.  Oil adds to gains after U.S. crude drawdown
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Investing.com - Oil prices added to overnight gains in European trade on Thursday, after data in the prior session showed that oil supplies in the U.S. fell for the ninth week in a row last week.

However, elevated stocks of fuel products amid slowing demand growth is expected to keep prices under pressure.

Crude oil for September delivery on the New York Mercantile Exchange tacked on 18 cents, or 0.39%, to trade at $45.93 a barrel by 07:53GMT, or 3:53AM ET.

A day earlier, New York-traded oil rose 30 cents, or 0.66%, after weekly U.S. supply data showed a larger than expected fall in crude stockpiles and a surprising increase in gasoline inventories.

The U.S. Energy Information Administration said that crude oil inventories fell by 2.3 million barrels last week. But at 519.5 million barrels, inventories are at historically high levels for this time of year, the EIA said.

The report also showed that gasoline inventories increased by 0.9 million barrels, disappointing expectations for a decline of 0.8 million barrels. Gasoline stocks are also well above the upper limit of the average range, according to the EIA.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for September delivery inched up 21 cents, or 0.45%, to $47.38 a barrel, after gaining 51 cents, or 1.09%, on Wednesday, amid a broad recovery in risk appetite.

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