Oil dips, pares back only some of sharp gains made on U.S. stocks drawdown

Brent Oil  was trading 0.13% down at  $75.37.

Oil prices slipped on Thursday, paring back only some of the large gains made the previous day on the back a larger-than-expected drawdown in crude oil stocks in the United States.

Brent oil  fell 12 cents, or 0.2%, to $75.34 a barrel by 0649 GMT, after rallying 2.5% the previous day.

U.S. West Texas Intermediate (WTI) crude was down 14 cents, or 0.2%, at $72.47 after surging 3.1% on Wednesday.

Crude inventories fell by 6.4 million barrels in the week to Sept. 10 to 417.4 million barrels, the EIA said, compared with expectations in a Reuters poll for a 3.5 million-barrel drop.

“The data follow warnings from the International Energy Agency that supply lost from storms in the Gulf of Mexico would offset gains from OPEC,” analysts from ANZ Research said in a note on Thursday.

The storm caused a global decline in supply for the first time in five months but the market is set to begin approaching balance in October as the Organization of the Petroleum Exporting Countries (OPEC) and allies such as Russia, a grouping called OPEC+, carry out plans to increase supply.

U.S. Gulf energy companies have also been able to quickly restore pipeline service and electricity after Hurricane Nicholas passed through Texas, allowing them to double down on efforts to repair more significant damage from Ida.

Brent Oil , RSI Stood at 60.977, the current price is trading Above All  the Moving Averages . So, a  Buy trade can be executed with the following target and stop-loss:

TRADE SIGNAL-Brent Oil– Buy: 75.30, TARGET:-81.30, STOP LOSS:- 72.30.

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