Investing.com | Sep 13, 2017 10:34AM ET
Investing.com - Oil prices trimmed gains on Wednesday, after the U.S. Energy Information Administration reported a larger than forecast U.S. oil inventory build last week.
U.S. crude oil was up 39 cents or 0.89% at $48.63 a barrel at 10.35 ET from around $48.75 ahead of the report.
Global benchmark Brent futures were at $54.38 a barrel, up 11 cents or 0.2% from $54.59 earlier.
Crude oil inventories rose by 5.88 million barrels last week, the EIA said.
That was compared to forecasts for a stockpile build of 3.2 million barrels after a build of 4.58 million barrels in the previous week.
The report also showed that gasoline inventories fell by 8.42 million barrels, compared to expectations for a decline of 2.05 million barrels, while distillate stockpiles dropped by 3.21 million barrels, compared to forecasts for a decrease of 1.53 million.
The report came after industry group the American Petroleum Institute said that U.S. oil inventories increased by 6.2 million barrels last week.
It was the second straight build after Hurricane Harvey shut production in some Gulf of Mexico fields and refineries in Texas as some domestic producers also trimmed output to avoid a larger glut at storage.
Oil prices had been higher earlier after the latest OPEC report that showed oil production from the cartel fell last month for the first time since March.
The Organization of the Petroleum Exporting Countries said Tuesday that output declined by 79,000 barrels a day to 32.76 million in August, driven mainly by a drop in Libya, Gabon, Venezuela and Iraq.
OPEC also slightly raised its outlook for global oil demand in 2017 and 2018. The cartel now believes the world will consume 96.77 million barrels a day this year and 98.12 million barrels a day next year.
Prices received additional support amid reports that OPEC and its allies are discussing extending production cuts that are due to expire in March 2018 for roughly another three months.
Written By: Investing.com
Fusion Media will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk, and is not suitable for all investors. Trading or investing in cryptocurrencies carries with it potential risks. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Cryptocurrencies are not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument or cryptocurrencies you should carefully consider your investment objectives, level of experience, and risk appetite.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures), Forex and cryptocurrencies prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.