Oil prices surge on falling US inventories

By on July 26, 2017

NEW YORK, July 27— Oil prices continued to climb on Wednesday after data showed US inventories fell more than expected last week.

US crude stocks fell sharply by 7.2 million barrels in the July 21 week to 483.4 million, more than the expected decrease of 2.6 million barrels and 1.4 percent below the level a year ago, according to the weekly report by the Energy Information Administration on Wednesday.

Analysts said the data bolstered expectations that the long-oversupplied market was moving toward balance.

Meanwhile, oil prices were also lifted on Wednesday by weaker dollar, which spurred market appetite for the dollar-priced oil.

The West Texas Intermediate for September Delivery added USD0.86 to settle at USD48.75 a barrel on the New York Mercantile Exchange, while Brent crude for September delivery gained USD0.75 to close at USD50.97 a barrel on the London ICE Futures Exchange. (Xinhua)