U.S. crude inventories drop supports oil prices

HOUSTON, Dec. 20 (Xinhua) -- Crude oil prices continued to inch up Wednesday after an energy agency revealed a drop of U.S. commercial crude oil inventories.

U.S. commercial crude oil inventories, excluding those in the strategic petroleum reserve, decreased by 6.5 million barrels last week to 436.5 million barrels, which is in the middle of the average range for this time of year, the U.S. Energy Information Administration (EIA) said in its report on Wednesday.

"The larger than expected drop in U.S. crude inventories together with the shutdown of a key North Sea pipeline continue to provide crude oil price positive movement following the Organization of Petroleum Exporting Countries (OPEC) and its allies including Russia recently agreed to extend production cut through the end of 2018," said Linhua Guan, chairman of the Houston-based Star Energy International Corporation.

Moreover, the crude oil market in general "would be net positive on the day for the major U.S. tax overhaul heading to President Donald Trump's desk for his signature," he said. Enditem