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Oil moves higher after EIA storage data shows drawdown

Published 23/11/2016, 15:34
© Reuters.  Oil moves higher after EIA data; gains checked amid OPEC deal doubts
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Investing.com - Oil prices rose on Wednesday, after the U.S. Energy Information Administration reported a larger-than-expected U.S. oil inventory drawdown last week.

U.S. crude oil was up 25 cents or 0.71% at $48.3 a barrel at 10.35 ET.

Global benchmark Brent futures were at $49.34 a barrel, up 25 cents or 0.53%.

Crude oil inventories fell by 1.25 million barrels last week, the EIA said.

That was compared to forecasts for a stockpile build of 0.67 million barrels after a build of 5.27 million barrels in the previous week.

The report also showed that gasoline inventories rose by2.31 million barrels, compared to expectations for an increase of 0.64 million barrels, while distillate stockpiles rose by 0.32 million barrels, compared to forecasts for a decrease of 0.35 million.

Meanwhile, traders continued to ponder a planned output cut by major producers, aimed at reducing a global supply glut and supporting prices.

OPEC is to meet on November 30 to decide on strategy for the first half of next year.

The producer cartel is attempting to get its 14 member states along with non-OPEC member Russia to implement coordinated production cuts.

But doubts remain over the outlook for a deal, amid uncertainty over how any agreement would be implemented.

OPEC reached an agreement to limit production to a range of 32.5 million to 33.0 million barrels per day at a meeting in September.

But production by OPEC members hit a record high in October of 33.64 million barrels per day.

Reaching an agreement on a deal to cut output has proved problematic, with some producers, most notably Iran, reluctant to curb production.

Iran has ramped up production in a bid to regain market share after international sanctions against it were lifted last January.

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