Oil edges up after drop in U.S. crude inventories, but soaring output weighs
Oil prices inched up on Thursday on a decrease in U.S. crude inventories, but rising gasoline stocks and crude production weighed on the market.
U.S. West Texas Intermediate (WTI) crude futures were at $56.09 a barrel at 0101 GMT, up 13 cents, or 0.23 percent from their last settlement.
Brent crude futures
Traders said the higher prices came as U.S. crude oil inventories fell by 5.6 million barrels in the week to Dec. 1, to 448.1 million barrels
The slightly higher prices came after a much bigger sell-off in late U.S. trading.
"WTI prices cratered (on Wednesday) despite a drop in weekly crude inventories. Indeed, traders were more concerned about the steep rise in gasoline inventories," said Stephen Innes, head of trading for Asia/Pacific at futures brokerage OANDA in Singapore.
"This suggests that refiners may not need to process as much crude in the future" ANZ said on Thursday.
"The EIA report also showed that U.S. production increased again," the bank added.
U.S. crude production
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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