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Oil prices rose today after US industry data revealed a drop in oil stocks at Cushing at the WTI contract’s delivery point.

According to Reuters, Brent crude increased by $0.38 to $106.16 a barrel, while US crude gained $0.58 to $97.77 a barrel.

Crude prices gained after the latest data from American Petroleum Institute (API) revealed that oil stocks at Cushing declined by 1.6 million barrels, and distillates fell by 1.5 million barrels.

The oil prices also drew strength from frigid weather in the US, which has significantly boosted demand, as refiners pump out distillates, which include heating fuels.

Oil futures were given a further boost after the US government granted limited re-exports of foreign crude to Europe, which increased hopes that such shipments may ease the supply surplus created by the rise in shale oil production.

"Investors are waiting for the US Energy Information Administration oil inventory data which is scheduled later today."

Investors are waiting for the US Energy Information Administration oil inventory data which is scheduled later today.

But crude prices are under pressure as the operator of Buzzard field resumed production from the 200,000bpd field, which willl return to normal levels soon.

Bad weather also supported prices as it reduced output from Libya in the early session but National Oil Corp Libya said loading had restarted and production would return to normal in the following days.


Image: Cushing crude stocks fall by 1.6 million barrels as frigid winter boosts demand. Photo: courtesy of Victor Habbick.

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