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2017.12.0702:27:00UTC+00Oil Prices Rally on U.S. Crude Stocks Drawdown

Oil prices notched gains on Thursday after a report showed a decline in U.S. crude inventories, however, increasing gasoline stocks and crude production affected the market.

U.S. WTI crude futures stood at $56.18 per barrel up 22 cents or 0.4 percent from their last close. Brent crude futures, the international benchmark for oil prices, stood at $61.49 per barrel, up 27 cents or 0.44 percent.

According to traders, the high prices came as U.S. crude oil inventories declined by 5.6 million barrels in the latest week, to 448.1 million barrels, driving stocks below the seasonal levels seen in 2015 and 2016.

The slightly higher prices also came following a big sell-off in late U.S. trading.

Analysts also said that despite a decline in weekly crude inventories, WTI prices weakened as traders were more focused regarding the steep rise in gasoline inventories. Gasoline stocks increased 6.8 million barrels to 220.9 million barrels, according to U.S. EIA, a bigger increase than the anticipated rise of 1.7 million barrels.

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