Crude demonstrates further gain in Asia after sudden US stocks draw

On Thursday, in Asia crude prices rallied further, building on overnight revenues following a positive report on American inventories.

In New York, June delivery crude futures tacked on 0.49%, being worth $47.56 a barrel. As for London, Brent futures surged 0.44%, trading at $50.44 a barrel.

Overnight, crude futures rose because traders appreciated the latest data from the Energy Information Administration, demonstrating that American crude inventories sagged more than expected.

Crude prices managed to surge back higher than $47 just to settle higher, as market participants’ worries regarding ascending levels of American crude output relieved, right after the EIA disclosed a bullish inventories report.

Gasoline inventories edged down by only 0.150 million versus expectations for a draw of 0.538 million barrels, while distillate stockpiles sank by 1.6 million barrels, compared to hopes for a 1 million dip.

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