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Oil futures head higher on US stockpile data

There was also a 3.6mln barrel fall in gasoline and a 2.3 million barrel drop in distillate inventories.

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Crude futures headed higher after the stockpile data

Oil prices headed north Thursday as the market was buoyed by news the US had drawn more on stockpiles than expected, increasing demand.

Data late yesterday from the American Petroleum Institute (API)  showed a 6.7 million barrel decrease in crude supplies.

There was also a 3.6mln barrel fall in gasoline and a 2.3 million barrel drop in distillate inventories.

Analysts and brokers had expected that US crude stockpiles would decline by more like 2.3 million barrels.

The lower US dollar also contributed to upward momentum, making oil cheaper to buyers.

Spot oil is up 1.16% to US$47.98 a barrel.

Brent future  for September delivery are trading up 1.53% to US$49.56, while WTI is up 1.659% to US$48.23 per barrel.

Despite the price rise, global economic concerns persist, notably in the light of the UK's Brexit decision.

There is uneasy about market volatility in coming months, which is likely to have a contagious effect on assets like oil.

Also, in the wider macro space,  tomorrow's US non-farm payrolls report will be closely scrutinised on clues for future US policy.

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