Investing.com - U.S. crude oil inventories rose more than expected last week, the Energy Information Administration said in its weekly report on Thursday.
The EIA data showed that crude oil inventories increased by 10.27 million barrels in the week to November 9.
That was compared to forecasts for a stockpile build of 3.18 million barrels, after a build of 5.78 million barrels in the previous week.
The report was released one day later than normal due to the Veterans Day holiday.
The EIA report also showed that gasoline inventories fell by 1.41 million barrels, compared to expectations for a draw of 1.48 million barrels, while distillate stockpiles dropped by 3.59 million barrels, compared to forecasts for a decrease of 1.74 million.
U.S. crude prices were trading up 1.08% to $56.86 a barrel by 11:05 AM ET (16:05 GMT), compared to $56.88.
London-traded Brent crude futures were up 1.16% to $66.89 a barrel, compared to $67.04 ahead of the release.
Reports on Wednesday that OPEC said the cartel and its partners were discussing a 1.4 million-barrels-per-day cut in output managed to break a 12-day losing streak in U.S. crude prices that had been the longest on record.
Despite the two-day recovery, the barrel of West Texas Intermediate is still down more than 5% this week and more than 25% off its 4-year high reached in early October as concerns over signs of growing output from key producers - mainly the U.S., Saudi Arabia and Russia - along with indications of a global economic slowdown have pummeled prices.
Investors remained concerned that supply will outstrip waning demand as the International Energy Agency predicted this week that demand from non-OECD countries would diminish next year, while OPEC’s monthly report released on Tuesday admitted that the cartel forecast demand for its oil to fall faster than expected in 2019.