Oil prices drop after recovering from surprise dip in U.S. inventories

Oil prices drop after recovering from surprise dip in U.S. inventories

Oil prices dropped on Thursday in Asia which overlooked gains following a surprise dip in U.S. inventories.

Oil prices rallied more than 1% overnight after the U.S. Energy Information Administration reported an unexpected 1.7-million-barrel crude inventory drop for the week compared to analysts’ expectations of a 2.2-million-barrel build.

However, oil erased its gains soon after.

Comments by Russian Energy Minister Alexander Novak said that no formal proposals have been put forward to change the terms of a global deal on curbing oil supplies which was agreed between OPEC and its allies.