Oil prices stabilized in early Asian trading on Thursday, as a surprise drawdown from U.S. crude oil inventories, which supported prices, was countered by lower-than-expected Russian supply cuts and a strong dollar.
Brent crude futures remained unchanged at $78.28 per barrel. U.S. West Texas Intermediate crude fell by 6 cents, or 0.1%, to $72.91 per barrel.
The U.S. Energy Information Administration confirmed yesterday that U.S. crude oil inventories declined, helping to support prices. Refineries have ramped up production following the maintenance season, and imports have fallen to a two-year low.
Crude oil inventories fell by 7.5 million barrels in the week ending March 24 to 473.7 million barrels, compared to analysts' expectations in a Reuters poll for an increase of 100,000 barrels.
Meanwhile, reports of a decrease in Russian crude production by about 300,000 barrels per day, which is less than the targeted cuts of 500,000 barrels per day, along with a strong U.S. dollar, erased oil price gains.
