Oil steady near 2016 highs after US inventory drop
Overall the market is well supported at current prices
LONDON — Oil prices were steady on Thursday, underpinned by a surprisingly large drop in US inventory levels the previous day to stay within sight of this year’s highs hit in June. Brent crude futures were unchanged at $51.86 per barrel at 9.13am, after hitting a high of $52.09 the previous day. US futures were down 5 cents at $49.78 a barrel. Both contracts hit their highest in nearly four months on Wednesday after US data showed crude oil stockpiles fell 3-million barrels last week to 499.74-million barrels, confounding expectations for an increase. Still, inventories are near record highs and even the prospect of a modest cut in production from the world’s largest exporters might not be enough to fuel a more sustained rally, analysts said. "Optimism on the Opec deal and surprising storage declines pushed oil prices to the upper end of the recent trading range. Both trends are temporary and unlikely to mark the easing of the oil supply glut. We see more downside than upside from t...
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