By Kim Khan
Investing.com - Stockpiles of U.S. oil rose more than anticipated last week, the Energy Information Administration said Wednesday.
But a drop in inventories of products helped oil prices maintain their strong rise for the day.
Oil inventories rose by 3.35 million barrels for the week ended Jan. 31, the EIA said. Analysts were looking for a build of 2.8 million barrels, according to forecasts compiled by Investing.com.
The American Petroleum Insitute reported yesterday that its measure of stockpiles showed a rise of 4.2 million barrels, so traders weren't too surprised at a stronger build.
“A crude build of 3 million barrels should technically be bearish for oil," Investing.com analyst Barani Krishnan said. "But no one’s really giving too much importance to the EIA data as today’s attention is almost entirely on the coronavirus vaccine story and how a quick development on that front might dramatically change the fortunes of oil, which just a day ago seemed on the road to absolute doom.”
Gasoline inventories dropped unexpectedly by 91,000 barrels, versus expectations for a rise of about 2.1 million barrels. Distillate stockpiles fell by 1.5 million barrels, compared with forecasts for them to remain about flat.
WTI futures rose 3.5%. They were up by about 4% ahead of the numbers.