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Oil retreats after gains on U.S. crude stocks draw

Published 27/07/2017, 14:37
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Investing.com - Oil Thursday retreated from eight-week highs after gains on a larger-than-expected fall in U.S. crude stocks.
U.S. crude was off 42 cents, or 0.86%, at $48.33 at 08:00 ET. Brent shed 41 cents, or 0.80%, to $50.56.
The Energy Information Administration Wednesday reported a drop in crude inventories of about 7.2 million barrels.
That easily beat a forecast fall of 2.6 million barrels. Gasoline inventories also fell more than expected.
Oil has advanced this week after Saudi Arabia pledged to cut crude exports beginning next month.
OPEC and non-OPEC producers may also extend an agreement to cut output by 1.8 million barrels a day to beyond March.
However, gains are expected to be capped on the view higher prices could encourage low-cost U.S. shale producers to increase output.

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