U.S. crude inventories dropped more than expected and it resulted to a decline in oil futures

US crude biggest slump

The price of oil advanced on Thursday and was followed by a government released data suggesting that crude stockpiles in the United States unexpectedly fell.

According to the Energy Information Administration (EIA) on the previous day, crude inventories in the stateside last week dropped more than expected after refineries strengthened production to the highest percentage of capacity in over 12 years. Government figures suggested that U.S. crude stockpiles declined as much as 6.5 million barrels last Wednesday. This is much higher to the expected 2.7 million barrel drop.

Processed crude from refiners were close to hitting 17.6 million barrels and it beats the record set last May. It was also the most processed for any given week since the U.S. Department of Energy begun collecting data in 1982.

Looking on oil prices; U.S. West Texas Intermediate (WTI) crude futures rose about 0.2 percent or 8 cents to settle at $49.64 per barrel. WTI surged more than 0.8 percent on Wednesday’s session. International benchmark for oil Brent crude futures edged up as much as 0.15 percent or 8 cents to finish at $52.78 per barrel by 0015 GMT.

The unexpected highs from gasoline stocks, however, is limiting oil futures from further rising and somehow weakening the on-going attempts of the Organization of the Petroleum Exporting Countries (OPEC) and other members, including Russia, to strengthen prices that are half of level last 2014.

The club has been curbing production by 1.8 million barrels per day (bpd) on a deal that started this January and will end on March 2018.

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