Yemisi Izuora
Oil prices edged up on Thursday to extend gains from the previous session, lifted by a decline in U.S. commercial crude inventories, while international crude markets were weaker due to the trade dispute between the United States and China.
The U.S. West Texas Intermediate (WTI) crude futures were at $67.90 per barrel up by 4 cents from their last settlement. That followed a 3 percent jump the previous session.
“Oil prices jumped overnight as inventories drew down more than expected,” said William O’Loughlin, investment analyst at Australia’s Rivkin Securities.
U.S. commercial crude oil inventories fell by 5.8 million barrels in the week to August 17 to 408.36 million barrels, the Energy Information Administration, EIA, said on Wednesday.
International markets were weaker as the ongoing trade spat between the United States and China was seen as a drag on economic growth.
However Brent crude oil futures were at $74.65 per barrel, down 13 cents from their last close.
U.S. and Chinese officials this week met for the first time in over two months to resolve the deepening trade conflict, so far without result, with the latest round of U.S. tariffs due to be implemented on Thursday.
On the supply side, U.S. crude oil production rose back to 11 million barrels per day, the EIA report said.
That means the world’s three top producers, Russia, the United States and Saidi Arabia, now all churn out around 11 million barrels per day, bpd, meeting a third of global demand.