Oil Prices Post Gains After Drop in Crude Inventories

Following news of an unexpected decline in U.S. crude inventories, oil prices on Tuesday rose.

West Texas Intermediate on the New York Mercantile Exchange climbed $1.34 to settle at $63.40 per barrel on  April contracts.

In London on the ICE European exchange, Brent crude wnt up $1.50 to settle at $67.55 on May contracts.

Prices for natural gas on the NYMEX rose 3 cents to settle at $2.68 mmbtu.

The increase in oil prices was attributed to news from the American Petroleum Institute that U.S. crude inventories had plummeted 2.74 million barrels last week. It’s believed to be the largest decline since early January.

The price increase led some observers and experts to suggest that recent “sideways trading” might not last much longer because it would appear the market might be balancing itself.

Even Saudi Arabian  Crown Prince Mohammed bin Salman expects a “stable oil market ahead. It’s what he said Tuesday during a meeting with President Trump at the White House. The Crown Prince also claimed his kingdom has an 84-year supply of crude oil.