West TX Oil Rallies on Large U.S. Stockpile Draw

U.S. crude futures rose towards $49 a barrel in early Asian trade on Thursday after a than expected draw in U.S. crude inventories indicated buoyant demand for oil, although a strengthening dollar capped price gains.

U.S. crude for September delivery climbed 8 cents to $48.87 a barrel as of 0008 GMT, after ending the previous session up 81 cents, or 1.7 percent.  Brent crude oil for September delivery rose 22 cents to $53.60 a barrel after settling 8 cents higher.

U.S. crude oil stocks fell by 4.2 million barrels to 459.68 million in the week to July 24, more than twenty times analysts’ expectations for a decrease of 184,000, data from the Energy Information Administration (EIA) showed on Wednesday.