Oil extended gains above $65 a barrel after U.S. crude inventories unexpectedly dropped, falling below the five-year average in a sign the OPEC-led supply cuts are bearing fruit.
Futures in New York rose as much as 0.9 percent after jumping to a six-week high on Wednesday. American crude stockpiles fell last week, government data showed, confounding more than 80 percent of analysts in a Bloomberg surveywho expected an increase. That means inventories in the U.S., which is taking less OPEC-produced oil than ever before, are below the five-year average for the first time since 2014.
West Texas Intermediate crude for May delivery rose as much as 57 cents to $65.74 a barrel on the New York Mercantile Exchange and traded at $65.25 at 10:59 a.m. in Tokyo. The May contract climbed $1.63 to $65.17 on Wednesday, the highest since early February. Total volume traded was about 18 percent below the 100-day average.
Brent for May settlement added 5 cents, or 0.1 percent, to $69.52 a barrel on the London-based ICE Futures Europe exchange. The contract on Wednesday jumped $2.05 to $69.47. The global benchmark traded at a $4.26 premium to WTI.
Source : Bloomberg