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.

CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.