Investing.com - Oil prices rose on Thursday in Asia on a weekly U.S. crude stockpile draw that came in almost three times the level previously expected.
U.S. Crude Oil WTI Futures gained 0.3% to $56.05 by 12:30 AM ET (04:30 GMT). International Brent Oil Futures inched up 0.2% to $63.31.
The U.S. Energy Information Administration said crude inventories fell by 10.84 million barrels for the week to July 19, versus a forecast draw of 4 million barrels.
The EIA report also showed that gasoline inventories decreased by 226,000 barrels, compared to expectations for a draw of 730,000 barrels. Distillate stockpiles rose by 613,00 barrels, compared to forecasts for a drop of 499,000 barrels.
Oil prices jumped immediately following the release of the data, but gave back some of their gains after some analysts said the data could be potentially distorted due to impacts caused by Hurricane Barry.
The storm shut down more than half of the regular oil production on the U.S. Gulf of Mexico for at least two days before making its landfall on the central Louisiana coast on July 13.
“Hurricane Barry has shaken up the data for a second week with lower production and stymied imports leading to a near-11 million barrel draw,” said Matthew Smith, analyst at New York-based crude cargoes tracker Clipperdata.
“Obviously, the effects of Hurricane Barry drove the decline and the plunge in U.S. production on the week,” agreed John Kilduff, founding partner of New York energy hedge fund Again Capital.
Lingering concerns about tensions in the Middle East were also cited as supporting the oil markets. Last Friday, Iran forces seized a British-flagged tanker in the Gulf.