Everything is bigger in Texas, including crude oil production

Crude Oil Prices Forecast: Mixed Technical Picture

Crude Oil Prices Forecast: Mixed Technical Picture

The crude oil prices went up after surprising data for drops in USA inventories.

A pump jack stands idle in Dewitt County, Texas January 13, 2016.

On Tuesday, the Office of the U.S. Trade Representative (USTR) published a proposed list of products imported from China that could be subject to additional tariffs, "as part of the U.S. response to China's unfair trade practices related to the forced transfer of U.S. technology and intellectual property".

Brent hit a session low of $66.69 and USA crude slumped as low as $62.06.

"It would be negative for pricing", he added.

At 0949 GMT, ICE June Brent crude futures were at $68.05/b, against Wednesday's $68.02/b settle, while the NYMEX May light sweet crude contract was at $63.36/b, down from Wednesday's $63.37/b settle.

Brent crude futures were down 1.81 per cent at $66.89 per barrel at the time of writing, while the U.S. benchmark West Texas Intermediate (WTI) was down 1.89 per cent at $62.31 per barrel.

But prices rebounded after US crude inventories fell by 4.6 million barrels last week, compared with analysts' expectations for an increase of 246,000 barrels, according to Energy Information Administration data. Analysts had expected an increase of 246,000 barrels.

Gasoline futures rose 0.24% to $1.9816 a gallon.

But Mr. O'Grady said investors are ignoring several factors that could push oil prices higher, including simmering tensions in the Middle East and tightening supplies.

Prices were also helped by a turnaround in the USA stock market.

With China and the US announcing new tariffs on the other's products by the day, and investors seeking asset classes safer than equities and oil, the market could "look past" any USA crude oil inventory data, Harry Tchilinguirian, global head of commodity markets strategy at BNP Paribas, told MarketWatch on Wednesday.

A deal by OPEC and non-OPEC producers to get rid of excess supply has also supported prices.

The price of crude oil is also fueled by the information that in March oil exports from OPEC countries reached an 11-month low.

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