WASHINGTON (dpa-AFX) - Crude oil futures settled higher on Thursday, recovering from early lows, after data showed a bigger than expected decline in crude inventories in the U.S. last week.
Worries about outlook for energy demand, fears of possible excess supply in the market after the OPEC+ abandoned its output talks earlier this week following disagreement between Saudi Arabia and the United Arab Emirates.
West Texas Intermediate Crude oil futures for August ended up by $0.74 or about 1% at $72.94 a barrel.
Brent crude futures were up $0.76 or 1.03% at $74.19 a barrel a little while ago.
Data released by U.S. Energy Information Administration (EIA) this morning showed crude inventories in the country fell by 6.866 million barrels last week, more than 50% up from an expected drop of about 4.03 million barrels.
The data also showed distillate stockpiles increased by 1.616 million barrels last week, much more than expected increase of 171,000 barrels, while gasoline inventories dropped by over 6 million barrels in the week, nearly three times the expected decline.
A report released by the American Petroleum Institute (API) late Wednesday showed crude inventories in the U.S. fell by 8.0 million barrels in the week ended July 1.
OPEC+ has restrained supply for more than a year since demand crashed during the coronavirus pandemic. Investors now fear that a lack of new supply agreement could prompt major oil producers to significantly step up production much faster.
As uncertainty lingers, Russia is trying to mediate between Saudi Arabia and the UAE to help strike a deal, media reported quoted OPEC+ sources as saying.
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