Mubasher: Oil prices advanced on Thursday as industry figures pointed to an unexpected drawdown in the US crude stockpiles, along with the support from forecasts of a lower-than-expected US shale output growth next year.

However, a sharper-than-expected slowdown in the industrial production growth in China, the world’s largest oil importer, kept a lid on price gains.

By 8:37 am GMT, US Nymex crude futures rose by 0.61% to $57.47 per barrel (pb), while global benchmark Brent futures climbed by 0.66% to $62.78 pb.

The American Petroleum Institute (API) on Wednesday reported that crude inventories in the US dropped by 541,000 barrels in the week to 8 November, confounding expectations of a buildup of 1.6 million barrels.

Official report from the US Energy Information Administration (EIA) are set to be later on Thursday, one day later than usual due to the US Veterans Day holiday on Monday.

Furthermore, Secretary General of the Organization of the Petroleum Exporting Countries (OPEC) Mohammad Barkindo on Wednesday said that there would probably be downward revisions estimates on supply into next year, most specifically those of US shale production.

Output growth from some US shale oil producers ranged 300,000 barrels per day (bpd) from to 400,000 bpd, Barkindo said.

OPEC members and non-affiliated partners, including Russia, an alliance known as OPEC+, are due to meet on 5 and 6 December to review their production policy and an agreement to reduce supply by 1.2 million bpd, which has been implemented since January.

On the demand front, fears mounted after data from China showed that industrial output grew slower than expected last month.

However, some signals of a still firm demand were conveyed by the second highest level of oil refinery runs in China during the month.