SINGAPORE: Crude prices extended gains in Asia Thursday following a sizeable drop in US stockpiles, the first decline in seven weeks, indicating stronger demand in the world’s top oil consumer.
Official data showed US commercial crude inventories fell 4.9 million barrels in the week ending April 1, after rising 2.3 million barrels the week before.
The figures helped crude prices build on already healthy gains that came on the back of comments from Kuwait that this month’s crucial producers’ meeting could yield an agreement to limit output.
At around 0730 GMT Thursday, US benchmark West Texas Intermediate for delivery in May was up eight cents, or 0.21 percent, at $37.83 and Brent crude for June rose eight cents, or 0.20 percent, to $39.91.
Prices closed more than five percent higher on Wednesday.
“Prices edged up… after the EIA released supportive inventory data,” said EY oil and gas analyst Sanjeev Gupta, referring to the US Energy Information Administration.
Gupta and other analysts however doubted if the rebound will hold in the face of overproduction and weak demand.
