Oil prices steady on extended supply cuts, U.S. stocks draw

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Oil prices edged higher on Wednesday after a steep fall in the previous session,...

SINGAPORE - Oil prices edged higher on Wednesday after a steep fall in the previous session, supported by extended output cuts by OPEC and its allies despite concerns that a slowing global economy could crimp demand.An expected large draw in U.S. crude oil inventories also underpinned sentiment after a bigger-than-expected stocks fall in a private survey.

The Organization of the Petroleum Exporting Countries and other producers such as Russia, a group known as OPEC+, agreed on Tuesday to extend oil supply cuts until March 2020 as members overcame differences to try to prop up prices. Ahead of government data due later on Wednesday, industry group the American Petroleum Institute said that U.S. crude inventories fell by 5 million barrels last week, more than the expected decrease of 3 million barrels.

Still, signs of a global economic slowdown hitting oil demand growth worried investors after global manufacturing indicators disappointed and the U.S. opened another trade front after threatening the EU with more tariffs to offset government aid to the aviation industry.

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