Oil gains on surprise drawdown in U.S. crude inventories

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 () was up 19 cents, or 0.3 percent, at $63.56 a barrel by 0140 GMT after settling down 14 cents.

Front-month London Brent crude () for June delivery was up 20 cents, or 0.3 percent, at $68.22, having ended down 10 cents.

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 , 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 () were untraded due to a public holiday in China, after falling 0.8 percent on Wednesday. Shanghai trading will resume on Monday.

(This story has been refiled to add named item code)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.