2017.08.2401:09:00UTC+00Oil Prices Steady on Declining Crude Stocks

Oil prices were flat in early trade, retaining majority of their gains from the prior session following another reported decline in U.S. crude inventories, which is seen as an indication of a tighter market.

U.S. WTI crude futures traded at $48.31 per barrel, falling by 10 cents. Meanwhile, Brent crude futures traded at $52.48 per barrel, edging down by 9 cents from their last settlement.

According to traders, the ongoing declines in the U.S. commercial crude storage levels were an indication of a gradually tightening market, although another increase in output capped gains.

ANZ bank said that another solid drawdown in U.S. crude oil stockpiles should result in oil prices being well supported. However, it noted that there was a tinge of cautiousness as U.S. oil production continue to escalate.

Production of crude in the U.S. reached 9.53 million bpd in the previous week, its peak level since July 2015 and 13 percent higher than their recent trough in 2016.

Nonetheless, U.S. crude and gasoline stocks fell last week, according to the EIA.

Crude inventories slid by 3.3 million barrels in the week ending August 18 to 463.17 million barrels, falling 13.5 percent from their peak levels in March.