Oil holds onto gains after U.S. crude stock draw

Multinational

NEW YORK, July 20, 2017 – Oil was steady Thursday after big gains overnight on a larger-than-expected draw in U.S. crude stocks.

U.S. crude was up 23 cents, or 0.49%, at $47.55 at 08:00 ET. Brent added 28 cents, or 0.56%, to $49.98.

The focus turned to the global supply glut as OPEC output increased in June despite an accord to curb production.

OPEC and non-OPEC producers have agreed to cut output by 1.8 million barrels a day through to March.

OPEC and non-OPEC producers are due to hold a meeting in Russia later this week to discuss the current market situation.

The Energy Information Administration Wednesday reported a fall in U.S. crude inventories of about 4.7 million.

The EIA was forecast to report a fall of about 3.2 million barrels.

Gasoline inventories also fell more than expected.