Oil steadies as U.S. crude draw offset by Russian supplies, stronger dollar

Oil steadied in early Asian trade on Thursday as a surprise draw in U.S. crude oil stockpiles that supported prices was offset by a smaller-than-expected cut to Russian supplies and stronger dollar.

Brent crude futures remained unchanged at $78.28 per barrel at 0020 GMT. West Texas Intermediate U.S. Crude fell 6 cents or 0.1% to $72.91 per barrel.

The U.S. Energy Information Administration reported on Wednesday that the U.S. crude stockpiles unexpectedly fell last week, as refineries increased production following maintenance season, and imports dropped to a 2-year low.

Crude inventories dropped by 7.5m barrels to 473.7m barrels during the week ending March 24, compared to analysts' expectations, according to a Reuters survey. Analysts had expected a rise of 100,000 barrels.

The price of oil has been wiped out by reports that Russian crude production fell by about 300,000 barrels per day during the first three week of March. This is less than the 500,000 barrels per day target, and the strength of the U.S. Dollar.

Dollar index