Oil gains on surprise draw down in U.S. crude inventories
Commodity Alert: Oil gains on surprise draw down in U.S. crude inventories
Oil prices rose holding onto a late-session rally the previous day, buoyed by the U.S. government data showing a surprise draw down in crude stockpiles. 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 1.3 million barrels drop. Distillate stockpiles, which include diesel and heating oil, rose by 537,000 barrels, versus expectations for 1.1 million barrels drop.