NYMEX crude gains in Asia on U.S. stocks drop, patient Fed stance

Investing.com - Crude oil prices rose in Asia on Thursday as investors noted patience by the Federal Reserve in December meeting minutes on the timing of a rate hike in 2015 and responded to a slightly bullish report on U.S. crude inventories.

On the New York Mercantile Exchange, crude oil for delivery in February rose 0.20% to $48.75 a barrel.

Overnight, West Texas Intermediate oil futures came off the highest levels of the session on Wednesday, after data showed that oil supplies in the U.S. fell unexpectedly last week, while gasoline and distillate supplies surged.

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories decreased by 3.1 million barrels in the week ended January 2, compared to expectations for an increase of 0.9 million barrels.

Total U.S. crude oil inventories stood at 382.4 million barrels as of last week.

The report also showed that total motor gasoline inventories increased by 8.1 million barrels, above expectations for a gain of 3.4 million, while distillate stockpiles rose by 11.2 million barrels.

According to minutes of the Fed's December meeting minutes, the central bank pressed ahead with plans to begin raising interest rates later this year, although Fed officials said they could be "patient" in deciding when to begin the process.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for February delivery hit a low of $49.70 a barrel, a level not seen since May 2009, before recovering to trade at $51.01, down 10 cents, or 0.19%.

On Tuesday, London-traded Brent prices tumbled $2.01, or 3.78%, to close at $51.10 a barrel.

Payroll processing firm ADP said in a report earlier that non-farm private employment rose by a seasonally adjusted 241,000 last month, above expectations for an increase of 226,000.

The economy created 227,000 jobs in November, whose figure was upwardly revised from a previously reported 208,000.

While not viewed as a reliable guide for the government jobs report due on Friday, Jan. 9, it does give guidance on private-sector hiring.

Brent prices lost nearly 48% in 2014, while WTI futures dropped almost 46% after the Organization of Petroleum Exporting Countries decided to maintain its output target at 30 million barrels a day.

The decision disappointed hopes the oil cartel would lower production to support the market, as a surplus develops amid the shale boom in the U.S., which is pumping at the fastest pace in more than 30 years.