Crude Oil Eases Despite Inventories Drawdown

Crude Oil Prices Forecast: Mixed Technical Picture

Crude Oil Prices Forecast: Mixed Technical Picture

USA storage decreased to 425.3 million barrels last week, while outbound shipments of crude expanded to a record, according to the Energy Information Administration's weekly report Wednesday.

The correlation between oil and equities remains strongly positive, meaning a drop on the stock market is likely to be echoed by crude futures.

Prices had gone just above $71 per barrel early this year.

Asian stock markets rallied on Thursday morning, lifted by optimism that the trade war could be cooled.

Wednesday's weekly inventory figures showed that USA crude stocks unexpectedly declined by 4.6 million barrels in the most recent week.

The strength of the US dollar limited oil's gains, analysts said.

The Energy Information Administration said gasoline inventories had also fallen by 1.1 million barrels to 238.5 million barrels, while distillates gained 500,000 barrels at 129.5 million barrels.

Crude oil prices are slightly lower as they head toward their biggest weekly decline of over a month.

Salman Khan arrives in Mumbai, receives grand welcome by fans - See photos
His lawyer, Anand Desai, told Reuters he had submitted a plea for bail which a judge will hear on Friday. The four other co-accused - actors Saif Ali Khan , Tabu, Sonali Bendre and Neelam - have been acquitted.

The threat of a trade with with China has impacted the United States economic outlook, and generated demand worries in the oil patch.

China, the world's largest importer of raw materials, hit back at the Trump administration's plan to levy tariffs on $50 billion of its goods, retaliating with a list of duties on USA imports including soybeans, planes, cars, whiskey and chemicals.

There was a significant impact in U.S. commodity markets, with soybeans recording their biggest one-day fall in nearly a year.

Output from the 14 members of OPEC dropped to 32.04 million barrels a day in March, the lowest since last April, according to a Bloomberg News survey.

Saudi Oil Minister Khalid Al-Falih recently spoke about long-term co-operation running over 10 to 20 years.

Bullish market sentiment has been supporting the record net speculative length in ICE Brent futures, which hit a record high of 595,596, up 34,388 from the previous week, as the front-month contract hovered above $70/b during the reporting period ending March 27.

Crude oil prices were moving between small gains and losses for most of overnight trading.

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