Oil prices rise on fall in US stocks and Middle East tension

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US crude inventories drop by nearly 11-million barrels in the week, nearly three times more than analyst expectations

Oil prices rose on Thursday amid tension in the Middle East and a big fall in US crude stocks, but gains were capped as weak western manufacturing data indicated slowing economic growth and, in turn, the potential for reduced fuel demand.

US crude stocks fell by nearly 11-million barrels last week, the US Energy Information Administration reported on Wednesday, well above analysts’ expectations for a drop of 4-million barrels. Oil prices have also been under pressure from concerns about global economic growth amid growing signs of harm from the US-China trade war that has rumbled on over the past year. However, the White House said on Wednesday that top US and Chinese negotiators will meet next week to continue talks, and global equities edged up on the news.

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