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Oil futures recover on inventory drawdown

Published 25/05/2016, 12:57
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Investing.com - Oil futures on Wednesday ended a recent losing streak and moved back toward the $50-dollar level on stronger-than-than drawdown of U. S. crude.
U. S. crude futures for July delivery were up 55 cents, or 1.13%, at $49.17 a barrel at 0654ET. Brent crude futures rose 1.30% to $49.24 a barrel.

The latest weekly U.S. inventory data by the American Petroleum Institute released Tuesday showed that U.S. crude stockpiles dropped by 5.1 million barrels to 536.8 million, more than double the forecast fall.
Strong U.S. new homes sales also pointed to the U. S. economy being sufficiently strong to absorb a modest interest-rate hike, a factor that would underpin demand for oil.
Investors will be looking to official inventory figures from the U.S. Energy Information Administration later on Wednesday.

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