API shows fall in United States crude-oil inventories


The U.S. Energy Information Administration said inventories fell by 4.6 million barrels in the most recent week, compared with expectations for an increase of 246,000 barrels.

A slightly stronger USA dollar weighed on prices.

Oil prices settled slightly lower on Wednesday, as a surprise draw in US crude stockpiles triggered a rebound from session lows hit after China proposed a broad range of tariffs on USA exports that fed fears of a trade war. Also lending support for U.S. West Texas Intermediate and international-Brent crude oil was Russian Energy Minister Alexander Novak's comments that a joint organization for cooperation between OPEC and non-OPEC countries may be set up once the current deal on oil output curbs expires at the end of the year.

The decline in U.S. stockpiles has boosted optimism that surging shale output may not thwart Organization of the Petroleum Exporting Countries's (OPEC) efforts to drain a glut.

"Supported by a 4.617 million barrel weekly crude oil draw across the US, a solid upturn in equities encouraged buyers in WTI", said Anthony Headrick, energy market analyst and commodity futures broker at CHS Hedging LLC in Inver Grove Heights, Minnesota. Innes said prices were also supported by a weekly report that there was a drop in activity of drilling for new oil production in the United States.

Output from the 14 members of OPEC dropped to 32.04 million barrels a day in March, the lowest since last April, according to a Bloomberg News survey.

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Nymex reformulated gasoline blendstock-the benchmark gasoline contract-rose 0.3% to $2.03 a gallon. "We are seeing very strong demand for oil around the globe".

Gold, which does not offer a yield, is perceived as a safe store of value in times of tumult.

Meanwhile, spot silver was up 0.25pc at $16.30 per ounce after falling to $16.20, a one-week low.

However, fresh data on Russian crude production shows the level is at an 11-month high.

Physical vaulted gold / physical gold investment accounts; physical gold regular savings plans; physical gold certificates; physical gold ETFs; and physical gold undertakings. This year's performance is 21.29% while this quarter's performance is -8.71%. The exchange traded fund has net assets and 0.49% volatility this month. Similarly, although central banks continued to add to reserves, purchasing 371t in 2017, buying was down 5pc year-on- year.