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Oil prices extend gains after large U.S. stock draw

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Reuters SINGAPORE
Last Updated : Sep 17 2015 | 6:28 AM IST

By Henning Gloystein

SINGAPORE (Reuters) - Oil prices rose in early trading in Asia on Thursday after a large U.S. stock draw tightened the market, while traders kept a close eye to see whether the Federal Reserve would raise interest rates for the first time in almost a decade.

Crude's firm tone on Thursday comes after prices jumped as much as 6 percent on Wednesday, after U.S. Energy Information Administration data showed the largest crude drawdown in seven months at the key delivery point in Cushing, Oklahoma.

U.S. West Texas Intermediate (WTI) crude futures were trading at $47.26 per barrel at 0032 GMT, up 11 cents from their last settlement. Brent prices were up 5 cents at $49.80 per barrel.

"WTI prices gained the most this month after the EIA reported stockpiles slipped 2.1 million barrels last week as refineries increased operating rates for the first time since July. U.S. refiners typically slow output during September to perform maintenance," ANZ bank said on Thursday.

U.S. crude prices have seen bigger price rises in recent weeks than globally traded Brent futures, owing largely to Asia's weakening economies. This has narrowed the WTI discount on Brent by two-thirds to just over two dollars.

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(Editing by Ed Davies)

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First Published: Sep 17 2015 | 6:17 AM IST

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