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MTECHTIPS:- NYMEX crude higher in Asia on surprissngly large API drawdown

MTECHTIPS:- NYMEX crude higher in Asia on surprissngly large API drawdown

Crude oil prices gained in Asia on Wednesday as an industry survey showed a surprisingly large drop in U.S. stocks. The American Petroleum Institute said crude oil stocks fell 7.3 million barrels last week, compared to an expectation of a 1.9 million barrel drop. Data on refined products was not immediately available. The API data sets the tone for more closely-watched figures due from the U.S. Department of Energy on Wednesday. Crude oil for delivery in October on the New York Mercantile Exchange rose 0.50% to trade at $39.50 a barrel. On Monday, New York-traded oil futures tumbled to $37.75, a level not seen since February 2009, before closing at $38.24, down $2.21, or 5.46%. Overnight, crude oil futures extended strong gains on Tuesday, after China’s central bank cut interest rates, as Beijing steps up efforts to boost economic growth and halt a stock market rout. The People’s Bank of China cut interest rates by 25 basis points to 4.6%. The bank also cut the reserve requirement ratio for large lenders by 0.5% to 18.0%. Chinese equities have lost nearly 30% over the past two weeks amid growing fears over China’s slowing economy. The Asian nation is the world’s second largest oil consumer after the U.S. and has been the engine of strengthening demand.

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