API reports another large crude draw

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The rise in Brent crude oil futures prices likely reflected global oil inventory draws that were estimated to be 0.3 million barrels per day (bpd) during the fourth quarter of 2017.Crude oil price is gradually moving to N70 a barrel.

While enjoying the extra revenues, the Organization of the Petroleum Exporting Countries, Russia and their allies remain wary of sending prices so high that U.S. shale production climbs even faster and the market becomes oversupplied again.

Brent crude futures were at $69.56 at 0255 GMT, up 18 cents, or 0.3 percent, from their last close.

WTI Crude oil futures stayed supported amid record high equities and falling United States crude oil inventories.

Expected growth in total US crude supply was revised higher by 110,000 barrels a day to 820,000 a day, led by conventional production.

"Higher oil prices are bringing more supply to the market, particularly in North America", the Organization of Petroleum Exporting Countries said Thursday in its monthly report.

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The banks says the long-oversupplied oil market is tightening up more quickly than expected as global economic growth fuels demand and output cuts by OPEC, Russia and several other producers eat into the world's crude stockpiles.

USA drillers are likely to start pumping more oil after a sharp rally in prices since December, Goldman analysts say.

Last week, the American Petroleum Institute (API) reported a huge draw of 11.19 million barrels of crude oil, along with an increase in gasoline inventories of 4.338 million barrels.

The agency previously said US output could reach 10 million bpd in February and 11 million bpd in 2019.

This week, the API is reporting another, although smaller, build in gasoline inventories of 1.782 million barrels for the week ending January 12. Commercial oil stocks in the OECD are continuing to rapidly decline, investment and confidence are coming back to the industry, and a spirit of collaboration, equity and transparency pervades OPEC's expanding relations with its non-OPEC producing partners. Supply data from the Energy Information Administration will be released Thursday morning.

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