Demand concerns offset the decline in U.S. crude oil inventories
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Oil prices remained basically unchanged on Thursday, and support from the sharp decline in U.S. crude oil inventories was offset by concerns about a slowdown in global demand growth, with markets questioning the resolution of trade disputes between China and the United States.
Global benchmark Brent crude oil closed at $60.95 a barrel, up 25 cents, while U.S. crude oil rose 4 cents to close at $56.30 a barrel.
The Energy Information Association (EIA) said U.S. crude oil and finished oil stocks fell last week, and crude oil stocks fell for the third consecutive week despite increased imports.
Crude oil stocks fell by 4.8 million barrels, almost double analysts'expectations, to 423 million barrels, the lowest level since October 2018.
Bob Yawger, Mizuho's head of energy futures in New York, said: "This is definitely a bullish report."
After the EIA report was released, oil prices surged by more than 2%, but as market doubts about the prospects for a trade agreement between the world's two largest economies re-intensified, oil prices gradually rebounded. Although a new round of trade negotiations will be held next month.
On Thursday, China and the United States agreed to hold high-level talks in Washington in early October.
Long-standing trade disputes have curbed oil prices, but the price of Brent crude oil has risen by about 12% this year, driven by cuts in production by the Organization of Petroleum Exporting Countries (OPEC) and its allies, including Russia.
Nevertheless, according to a Reuters survey and data from the Russian Ministry of Energy, OPEC and Russia both increased production in August.
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