Oil prices regain ground after US inventory drawdown

Oil prices rose in American trade on Thursday on track for the second profit in a row away from two-month lows after US crude stocks marked a steep drawdown. 

China’s crude imports rebounded recently and buoyed hopes for improving demand in the world’s second largest fuel consumer.

Prices 

US crude rose 0.7% today to $79.76 a barrel, with a session-low at $78.97 a barrel.

Brent rose 0.6% today to $84.30 a barrel, with a session-low at $83.55. 

US crude rallied 1.1% on Wednesday away from recent two-month lows at $76.92 a barrel.

Brent rose 0.9% yesterday away from March 12 lows at $81.74 following US crude stocks data.

US Crude Stocks 

The Energy Information Administration reported a drop of 1.4 million barrels in US crude stocks last week to 459.5 million barrels, while analysts expected a 1 million barrels drop.

Gasoline stocks rose by 0.9 million barrels to 228 million barrels, while distillate stocks rose by 0.6 million barrels to 116.4 million barrels. 

US Production

The EIA reported no change in US crude stocks att 13.1 million barrels for the eighth week in a row, the lowest since December 8. 

Chinese Imports

Earlier customs data showed Chinese crude imports reached 44.72 million metric tonnes, equalling 10.88 million bpd in April, up 5.45% from a year ago. 

Oil Prices Outlook

Oil consultancy firm PVM said the recent boost in oil prices was somewhat also underpinned by the receding hopes of a ceasefire deal between Israel and Hamas, with the geopolitical threat in the region remaining strong and underpinning prices.