* Both Brent, U.S. crude p over half a dollar
* U.S. crude inventory draw further supports WTI crude
* But analysts warn that end of bull-run could be close
By Henning Gloystein
SINGAPORE, April 27 (Reuters) - Crude oil futures rose half
a dollar in early Asian trading on Wednesday and remained near
2016 highs on the back of strong investor sentiment and a weak
dollar, although analysts warned this month's bull-run could
soon run out of steam.
International Brent crude futures LCOc1 were trading at
$46.26 per barrel at 0023 GMT, up 52 cents, or 1.1 percent, from
their last settlement.
U.S. West Texas Intermediate (WTI) crude was also up 52
cents, or 1.2 percent, at $44.56 a barrel.
WTI was further lifted after the American Petroleum
Institute (API) reported a drawdown of nearly 1.1 million
barrels in U.S. crude inventories last week versus a 2.4
million-barrel build expected by analysts in a Reuters poll.
Both Brent and WTI were near 2016 highs of $46.49 and
$44.83, respectively reached the previous session.
Beyond strong investment appetite from financial traders,
analysts said crude was receiving support from a falling dollar,
which has shed 5 percent in value against a basket of other
leading currencies .DXY since the beginning of the year.
A weak dollar, in which crude is traded, makes fuel imports
cheaper for countries using other currencies at home,
potentially spurring demand.
"A weaker U.S.-dollar and expectations of stronger
fundamentals drove crude oil prices higher. Sentiment continues
to improve, with major producer BP (LON:BP) suggesting the markets may
rebalance by the end of the year," ANZ bank said on Wednesday.
But the bank warned that the steep gains seen this month
might "test investors' bullish resolve this week."
With prices up by almost a quarter this month and by over
two-thirds since their 2016 lows, traders with long positions at
some point will be tempted to sell and lock in the profit.
(Editing by Richard Pullin)