Oil prices steady as drawdown in US crude stocks counters China Covid concerns

Oil prices were little changed on Wednesday as a larger-than-expected draw in United States crude stocks offset worries about rising Covid-19 cases in top oil importer China. Brent crude futures rose seven cents, or 0.1 per cent, to $80.06 per barrel by 0404 GMT, while US West Texas Intermediate (WTI) crude futures gained four cents, or 0.1pc, to $76.27. US crude inventories fell by about 3.1 million barrels in the week to Dec 16, according to market sources citing data from the American Petroleum Institute, while nine analysts polled by Reuters had estimated a 1.7m barrel drop in stocks. Gasoline inventories rose by about 4.5m barrels, while distillate stocks rose by 828,000 barrels, according to the sources, who spoke on condition of anonymity. “The larger-than-expected draw in oil inventories was a bullish factor as undersupply issues may be worsened again on the back of China’s reopening (and) the US’ refill of its Strategic Petroleum Reserve”, CMC Markets analyst Tina Teng said.