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Oil Futures End Sharply Higher After Official Inventory Data

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Oil Futures End Sharply Higher After Official Inventory Data

Crude oil futures rebounded after early weakness on Wednesday and regained the entire ground the contract had lost in the previous session, after official data showed crude stockpiles in the U.S. rose less than expected in the week ended November 15, and on rising tensions in the Middle East.

Traders shrugged off concerns about U.S.-China deal uncertainty and energy demand outlook, and focused on official crude inventory data for direction.

West Texas Intermediate Crude oil futures for December ended up $1.90, or 3.4%, at $57.11 a barrel on the expiration day.

On Tuesday, WTI Crude oil futures for December ended down $1.84, or 3.2%, at $55.21 a barrel.

Brent Crude futures ended up $1.56 at $62.47 a barrel on Wednesday.

Data released by the Energy Information Administration (EIA) this morning showed crude inventories in the U.S. rose by 1.4 million barrels last week, less than what had been forecast.

Gasoline stockpiles were up by about 1.8 million barrels last week, more than two times the expected increase. Meanwhile, distillates inventories dropped by about 1 million barrels, larger than the forecast for 730,000 barrels decline.

On Tuesday, a report from the American Petroleum Institute said crude inventories in the U.S. rose by 6 million barrels to 445.9 million barrels last week.

Crude oil prices were also supported by reports that Russian President Vladmir Putin has indicated that Russia will support OPEC on production cuts during the cartel’s meeting in early December in Vienna.

Meanwhile, tensions in the Middle East escalated with Yemen’s Houthi rebels claiming they intercepted a Saudi warplane.

The material has been provided by InstaForex Company – www.instaforex.com