Oil stays positive on US stockpile drop

Oil prices manage to hold on to gains as falling US inventory number countered fading prospects of OPEC and non-OPEC production freeze.

At the time of writing, Brent futures were up 2% or 75 cents at $38.63/barrel levels. WTI oil futures were up 2.84% or 90 cents at $36.90/barrel.

A private industry group – American Petroleum Institute – data released showed yesterday showed crude inventories fell by 4.3 million barrels last week. This has pushed up expectations of a drawdown in the official inventory figure due for release later today.

The bullish sentiment also found support after Kuwait, a heavyweight in the Organization of the Petroleum Exporting Countries, expressed confidence that players within and outside the bloc will agree to limit their output at a meeting later this month.