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Oil prices gain as US crude stocks fall 2.1m barrels

Oil prices gained on Wednesday (Aug 27), with the New York WTI benchmark barely higher as the US weekly stockpiles report showed a fall in inventory.

NEW YORK: Oil prices gained on Wednesday (Aug 27), with the New York WTI benchmark barely higher as the US weekly stockpiles report showed a fall in inventory.

The main US contract, West Texas Intermediate crude for October delivery, added two cents at US$93.88 (S$117.03) barrel. Brent North Sea crude for October meanwhile rose 22 cents to US$102.72 (S$128.05) a barrel in London deals.

The main news was a 2.1 million barrel fall in US commercial crude-oil stockpiles, larger than expected. Stocks at the Cushing, Oklahoma, depot where WTI is delivered rose, however, by 500,000 barrels.

The Energy Department's weekly report showed a 0.4 percent increase in total petroleum inventories, including distillates and gasoline, in relation to average daily demand.

The simmering conflicts in Ukraine and the Middle East seemed not to bother markets. Desmond Chua, market analyst at CMC Markets in Singapore, said investors have been buoyed by "a string of strong economic data in the US".

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