(MENAFN- ProactiveInvestors)Crude prices remained on the front foot through Wednesday as American stockpile stats buoyed traders. Weekly figures from the American Petroleum Institute showed that the crude surplus reduced by a larger margin than experts had predicted. According to API inventories reduced by 6.7mln barrels last week to 473mln. Corresponding and more closely followed inventory figures from the US Energy Department this afternoon reveal a 6.8mln barrel drop versus analyst expectations of just a 1.7mln barrel draw. America's Energy Information Administration yesterday downgraded forecasts for US oil production next year with a predicted 160000 barrel per day decline rather than an increase that was predicted by the prior forecast. Demand globally will this year increase by around 1.25mln barrel according to the EIA which slightly upgraded this forecast. In London trading Brent crude was up around 1.5% at US$65.88 per barrel while West Texas Intermediary was up almost 2% at US$61.30. The fundamental challenges that brought crude into its current lull have been highlighted in BP's annual 'Strategic Review of World Energy' report. Key structural factors identified by BP are somewhat predictable and have run as a common theme in market commentary for some time; namely the continued rise of onshore oil production in the United States driven by shale developments and a slowdown of demand growth in China.
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