Oil Futures Prices Extend Their Up Moves Following A Sharp Drop in U.S. Inventories

Crude oil futures advanced on Thursday, extending their upbeat moves on Wednesday which came after a steep drop in U.S. inventories and comments from the Algerian energy ministry.

U.S. crude and global benchmark Brent crude both rose 0.4 percent to $47.55 and $50.45 a barrel, respectively on Thursday. According to data released by the U.S. Energy Information Administration on Wednesday, U.S. crude stockpiles fell 5.2 million barrels in the week to May 5 as imports dropped sharply.

This was not only their biggest one-week drawdown since December but also sent crude stocks to 522.5 million barrels – the lowest since February.

After a meeting with his Iraqi counterpart in Baghdad on Wednesday, Algeria’s Energy Minister Nouredine Bouterfa said that both sides were in favour of extending OPEC and non-OPEC producers’ deal on global oil supply cuts for a further six months. OPEC is due to meet later this month in Vienna.

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