Oil rises on fall in US stocks

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Rising tensions with Iran over drones and safe shipping fuel concerns about supply disruptions

Sinagpore/Tokyo — Oil prices edged higher on Wednesday, extending gains as rising tensions with Iran fuelled concerns about supply disruptions and as US inventory data showed a much bigger-than-expected drop in crude stockpiles.

US West Texas Intermediate crude were up 23c, or 0.4%, at $57.00 a barrel, having risen about 1% in the previous session. Crude stocks at the Cushing, Oklahoma, delivery hub fell by 448,000 barrels, although fuel stocks rose by 4.4-million barrels, compared with analysts’ expectations in a Reuters poll for a 730,000-barrel decline.The potential for renewed Sino-US trade talks also helped bolster prices, analysts said. White House economic adviser Larry Kudlow on Tuesday called it a good sign that US officials would be travelling to China to discuss reviving stalled trade talks.

Meanwhile, signs of rising tensions in the Middle East offset a weaker global growth outlook from the International Monetary Fund, which had kept prices largely flat for much of Tuesday’s session.

 

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