Oil prices rise after U.S. crude stocks draw

By Koustav Samanta
SINGAPORE, Aug 22 (Reuters) - Oil prices rose on Thursday
following a drawdown in U.S. crude inventories, but gains in
fuel inventories and persistent concerns over the global economy
and future demand outlook capped gains.
Brent crude futures LCOc1 climbed 27 cents, or 0.5%, to
$60.57 a barrel by 0051 GMT on Thursday.
West Texas Intermediate (WTI) crude CLc1 futures rose 35
cents, or 0.6%, to $56.03 per barrel.
U.S. crude inventories fell more than expected last week as
refineries hiked production, but gasoline and distillate
stockpiles showed bigger-than-expected builds, the Energy
Information Administration said on Wednesday. Crude inventories USOILC=ECI fell by 2.7 million barrels
in the week to Aug. 16, compared with analysts' expectations for
a drop of 1.9 million barrels. However, gasoline stocks
USOILG=ECI rose by 312,000 barrels and distillate supplies
USOILD=ECI grew by 2.6 million barrels. EIA/S
"With two weeks left in the critical driving season, the
surprising build in U.S. fuel inventories is being viewed as a
counter-seasonal Grim Reaper of sorts suggesting that gasoline
demand has peaked, and the worst is yet to come," said Stephen
Innes, a managing partner at Valour Markets.
"If trade uncertainties persist it will be difficult for oil
to shrug off concerns about the threat to global demand," Innes
added.
U.S. President Donald Trump on Wednesday said he was "the
chosen one" to address trade imbalances with China, even as
congressional researchers warned that his tariffs would reduce
U.S. economic output by 0.3% in 2020. Trump defended his actions and said he believed a trade deal
between the world's largest economies was still possible.
Asian shares edged ahead on Thursday after Wall Street got a
boost from strong retail results, but minutes of the Federal
Reserve's July meeting showed policymakers were deeply divided
over whether to cut interest rates as sharply as markets were
wagering. MKTS/GLOB
Meanwhile, oil markets were also supported by simmering
tensions between the United States and Iran, with Iranian
President Hassan Rouhani cautioning Washington against
tightening pressure on Tehran.
If Iran's oil exports are cut to zero, international
waterways will not have the same security as before, Rouhani
said on Wednesday. Echoing Rouhani's tone, Iranian Foreign Minister Mohammad
Javad Zarif said Tehran might act "unpredictably" in response to
U.S. policies under President Donald Trump.