SINGAPORE- Oil prices rose on Thursday after data showed US crude stockpiles fell more than expected last week, while the Chinese central bank’s cut in banks’ reserve ratio reinforced hopes of more stimulus measures and economic recovery.
Brent crude futures gained 25 cents, 0.3 percent , to $80.29 a barrel while US West Texas Intermediate crude climbed 31 cents, or 0.4 percent , to $75.40 a barrel.
“A significant drop in the US oil inventories and expectations of China’s economic recovery and more stimulus measures supported oil prices,” said Toshitaka Tazawa, an analyst at Fujitomi Securities.
“Tensions in the Middle East were also behind buying,” he added.
US crude stockpiles tumbled by 9.2 million barrels last week, the Energy Information Administration said, more than quadruple the 2.2 million-barrel draw analysts forecast in a Reuters poll
The draw was driven by a stark drop in US crude imports as winter weather shut in refineries and kept motorists off the road.
US crude output fell from a record-tying 13.3 million barrels per day (bpd) two weeks ago to a five-month low of 12.3 bpd last week after oil wells froze during an Arctic freeze.
Oil prices also drew support from hopes for China’s economic recovery.
