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U.S. Crude Oil Inventories Rise by 0.92M Barrels Last Week: EIA

U.S. Crude Oil Inventories Rise by 0.92M Barrels Last Week: EIA© Reuters.

Investing.com – U.S. crude oil inventories increased last week, the Energy Information Administration said in its weekly report on Wednesday.

The EIA data showed that rose by 0.919 million barrels in the week to Jan. 25.

That was compared to forecasts for a stockpile build of 3.1 million barrels, after a gain of 7.97 million barrels in the previous week.

The EIA report also showed that dropped by 2.24 million barrels, compared to expectations for a build of 2.80 million barrels, while decreased by 1.12 million barrels, compared to forecasts for a decline of 2.0 million.

extended gains after the data release, trading up 1.89 at $54.32 a barrel by 10:34 AM ET (15:34 GMT), compared to $53.83 prior to the publication.

London-traded rose 1.62% to $62.19 a barrel, compared to $61.59 ahead of the release.

Crude prices have recently been supported by concerns about supply disruptions following U.S. sanctions on Venezuela’s oil industry but worries over the outlook for the global economy limited upside.

“The sanctions so far have been mostly disruptive for refiners on the U.S. Gulf Coast, who are being forced to seek alternative heavy crude supplies, and have stepped up purchases from Canada,” said Vandana Hari of Vanda Insights, an energy consultancy.

Although the move pushed up oil prices, markets appeared relatively relaxed as the sanctions only affect Venezuelan supply to the U.S.

Beyond Venezuela, analysts pointed to economic weakness as countering supply-side troubles.

“Pulling (oil prices) in the opposite direction are heightened concerns about global growth, particularly that of China,” said Ole Hansen, head of commodity strategy at Denmark’s Saxo Bank.

High level officials from Beijing and Washington kicked off another round of trade talks Wednesday that will last through tomorrow. U.S. Treasury Secretary Steven Mnuchin said he expected there to be “significant progress” in reaching an agreement.

— Reuters contributed to this report

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Source: Investing.com

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