Oil prices climb higher as US inventory falls
Oil prices have increased after official figures showed a larger than expected fall in US crude stocks.
Brent crude rose by 18 cents to $52.88, while the US West Texas Intermediate (WTI) crude gained 16 cents to touch $49.72, reported Reuters.
According to the US Energy Information Administration, crude stockpiles in the country declined by 6.5 million barrels last week as refineries increased output to the highest capacity in 12 years.
Refiners processed approximately 17.6 million barrels of crude last week.
However, petrol inventories climbed higher, restricting oil price gains.
Freight Investor Services commodities broker Matt Stanley was quoted by the news agency as saying: “All the crude that was drawn was basically run through the refineries and this resulted in a gasoline build of 3.4 million barrels.”
The Organization of the Petroleum Exporting Countries (OPEC) members along with other key oil exporters including Russia are currently reducing output by 1.8 million barrels per day under a deal that has been extended to March next year.
The initiative to revive oil prices became largely ineffective as Libya and Nigeria, exempted members of the oil cartel, increased production.