Crude Oil Ignores First U.S. Supply Draw in 10 Weeks, Trading in Narrow Range

Crude oil were flat in early trading hours on Wednesday, received not much support from a surprise drawdown in U.S. inventories.

April West Texas Intermediate crude were trading around $48.60 per barrel at 3:00 pm GMT on the New York Mercantile Exchange after the U.S. Energy Information Administration reported domestic crude-oil supplies dropped for the first time in 10 weeks.

Crude supplies were announced to fall by 200,000 barrels for the week ended March 10. This was in a stark contrast to expectations of economists who forecast an increase of 3.3 million barrels.

Also supporting the price, the monthly report published by the International Energy Agency (IEA) on Wednesday suggested OPEC cuts should create a crude deficit in the first half of 2017. The EIA stated that if the group maintains its output curb to June, the market could show an implied deficit of 500,000 bpd.

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