Lower US oil stocks likely to help oil prices to another weekly gain

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Crude inventories dropped 4.8-million barrels, nearly double analysts' expectations, to their lowest since October 2018

London — Oil prices were steady on Friday, with crude benchmarks poised for multiweek gains amid a sharp drawdown in US crude inventories, while trade tensions eased as Washington and Beijing agreed to hold high-level talks in October.

"If trade tensions escalate further, oil demand growth may soften even more, requiring much lower prices," Giovanni Staunovo, oil analyst for UBS, said in a note analysing oil market trends for 2020. Crude stocks dropped 4.8-million barrels, nearly double analysts' expectations, to 423-million barrels, their lowest since October 2018.

 

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Oil slips on inreased US stocks and slowing global demandThe prolonged US-China trade dispute has been a dampener on oil prices but Brent is still up 12% this year, helped by Opec-led production cuts
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