Oil held gains after a drop in U.S. inventories eased demand concerns and took attention away from the deepening trade war.

Futures in New York edged lower after rallying 4% over the previous two sessions. U.S. stockpiles fell by 10 million barrels last week to to the lowest since October 2018, the Energy Information Administration reported Wednesday. However, a 1.6% increase in American production to a record over the same period tempered the price optimism.

West Texas Intermediate crude for October delivery lost 22 cents, or 0.4%, to $55.56 a barrel on the New York Mercantile Exchange as of 11:33 a.m. in Singapore after swinging between gains and losses earlier. The contract settled 1.6% higher on Wednesday.

Brent for October fell 37 cents, or 0.6%, to $60.12 a barrel on the ICE Futures Europe Exchange after closing 1.7% higher on Wednesday. The global benchmark crude traded at a $4.56 premium to WTI.

Source : Bloomberg