Crude oil prices rebounded after mid morning setback on Friday and eventually ended the session marginally up after data showed a larger than expected drop in crude inventories last week.
The positive close for the commodity was also due to easing worries about outlook for energy demand following the U.S. and China reaching an agreement, and hopes that OPEC-led supply cuts will continue to support oil prices.
West Texas Intermediate crude oil futures for February ended up $0.04 at $$61.72 a barrel, the highest settlement price in about 3-1/2 months.
On Thursday, WTI crude oil futures for February ended up $0.57, or 0.9%, at $61.68 a barrel. Crude oil futures gained about 2.1% in the week.
Brent Crude oil futures gained $0.18 to $68.10 a barrel, the highest level since mid-September.
Data released by the Energy Information Administration (EIA) this morning showed crude stockpiles in the U.S. to have declined by nearly 5.5 million barrels in the week ended December 20, more than thrice the expected drop.
The data showed gasoline inventories rose 2 million barrels last week, while distillate stockpiles declined, against expectations of an increase in stock.
The EIA data also showed Cushing saw a 2.4 million barrel drop in the week to December 20.
A report from Baker Hughes said drillers cut 8 oil rigs in the week to December 27, bringing the total count down to 677, the lowest since mid November.
A report from the American Petroleum Institute earlier this week said U.S. crude stockpiles declined by 7.9 million barrels last week, significantly higher than what was forecast by analysts.
The material has been provided by InstaForex Company – www.instaforex.com