Fundamental Comment

Oil prices remain firm after US crude stockpiles drop


Oil prices remained firm on Wednesday after the release of a report showing a more than expected draw in U.S. crude stockpiles last week. 

The Energy Information Administration (EIA) report signaled a drop by 2.2 million barrels in U.S. crude inventories in the week ended May 4, following a 6.2 million-barrel increase a week earlier. Analysts had estimated a fall by 0.2 million barrels.

U.S. crude stocks were down by 1.9 million barrels last week, according to industry report released by the American Petroleum Institute (API) late Tuesday.

A report due on Friday by oilfield services company Baker Hughes will provide an update on the number of rigs drilling for oil in the United States.

Crude oil futures traded higher at $71.10 a barrel after opening today at $70.04, while Brent crude futures traded at $77.10 a barrel. 

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