2018-11-22
Oil prices rose about $ 1 a barrel on Wednesday, recovering from the lowest levels in months, after data from the US government showed strong demand for fuel, but concerns about increasing global supply of crude continued.
 
London Brent crude futures rose 95 cents to $ 63.48 a barrel, up 1.52 percent. WTI futures rose $ 1.20 to settle at $ 54.63 a barrel, up 2.25 percent.
 
US crude inventories rose 4.9 million barrels last week, according to the Energy Information Administration, a bigger than expected increase. Crude stocks have grown for nine consecutive weeks in the longest wave since March 2017.
 
Crude stocks at the Kacheng delivery center in Oklahoma fell by 116,000 barrels, the first decline in nine weeks, the department said.
 
Gasoline inventories fell 1.3 million barrels to 225.3 million barrels, the lowest level since December 2017, while distillate inventories fell by 77,000 barrels, according to data.
 
Brent has fallen more than 25 percent since hitting a four-year high of $ 86.74 a barrel on Oct. 3, reflecting expectations of slower demand and abundant supplies from Saudi Arabia, Russia and the United States.
 
The Organization of the Petroleum Exporting Countries (OPEC) is talking about cutting supplies only months after they have grown, fearing a new supply gap.
 
Opec, Russia and other producers are studying supply cuts of between 1 million and 1.4 million bpd at the Dec. 6 meeting, informed sources said.
 
US energy companies cut oil drilling this week for the first time in three weeks.
 
Baker Hughes Energy Services said in its weekly report, which is closely monitored, that the number of active oil drilling in America declined by three excavators in the week ending 21 November, bringing the total to 885 diggers.