EIA reports drop in US crude inventories

Oil prices rose on Thursday in Asia as data showed US crude inventories fell more than expected last week.

US Crude Oil WTI Futures inched up 0.1% to $56.84 by 11:56 PM ET (03:56 GMT). International Brent Oil Futures rose 0.3% to $63.87.

The Energy Information Administration said in its weekly report that crude stockpile was down by 3.12 million barrels in the week to July 12, compared to forecasts for a stockpile draw of 2.69 million.

Gasoline inventories unexpectedly rose 3.57 million barrels, compared to expectations for a draw of 0.93 million barrels, the report also showed.

Meanwhile, distillate stockpiles rose 5.69 million barrels, more than the expected 0.61 million gains.

“A solid drop in implied demand has yielded very solid builds to both gasoline and middle distillates,” said Matt Smith, director of commodity research at crude cargoes tracker Clipperdata.

“Next week’s report will likely be even more mottled by the impact of Hurricane Barry.”

Oil prices were under pressure earlier this week following reports that the US and Iran might begin talks soon, easing tension in the Middle East. However, Iran later denied the reports.

Renewed Sino-US trade tension was also cited as a headwind. US President Donald Trump accused Beijing for not buying US farm products as agreed and said a trade deal with China might not be concluded in the near term.

The President also threatened to slap additional tariffs on Chinese goods.