Oil prices lack clear direction in push-pull market

Oil prices lack clear direction in push-pull market

Oil prices lack clear direction in push-pull market

The crude oil prices went up after surprising data for drops in United States inventories.

Brent for June settlement declined 2 cents to US$68 a barrel on the London-based ICE Futures Europe exchange, after slipping 10 cents yesterday.

The light WTI crude oil rose by 0.4% to 63.64 Dollars per barrel.

Futures in NY slipped as much as 2.1 percent to the lowest intraday price since March 20. West Texas Intermediate, the US benchmark, was down 0.21 percent to $63.24 per barrel. The Asian nation on Wednesday said it would levy an additional 25 percent tariff on about $50 billion of US imports to match the scale of proposed American tariffs announced earlier.

Oil prices rose on Thursday, holding onto a late-session rally the previous day, buoyed by the USA government data showing a surprise drawdown in crude stockpiles. Buyers initially supported the markets because the American Petroleum Institute (API) reported a surprise draw of 3.28 million barrels of USA crude oil inventories for the week-ending March 30, after analysts had anticipated a modest build in crude oil inventories of 246,000. All three major US stock indexes were higher on Thursday [.N], after the United States said it could negotiate with China on trade issues.

OPEC and its allies are collectively curbing 1.8 million barrels per day of crude output to help eliminate a global oil glut.

As U.S. production levels sore, the country is exporting more of its own oil and importing less from foreign sources.

Oil prices drew support as Wall Street rose.

The decline in USA stockpiles has boosted optimism that surging shale output may not thwart Organization of the Petroleum Exporting Countries's (OPEC) efforts to drain a glut.

Global equities sank after China unveiled its charges, which match the scale of proposed US tariffs announced earlier this week and ratchets up tension in a brewing trade war between the world's two largest economies.

Output from the 14 members of OPEC dropped to 32.04 million barrels a day in March, the lowest since last April, according to a Bloomberg News survey. Gasoline stocks dropped by 1.1 million barrels, just under analysts' expectations for a drop of 1.1 million barrels.

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