NYMEX crude up in Asia after API data shows mixed picture on stocks

Investing.com - Crude oil prices rose slightly in early Asia on Wednesday despite an industry report that showed a sizeable build in U.S. stocks, but also showed sharp draws on distillates as heating oil sales perk up on cold weather.

The American Petroleum Institute said crude stocks rose 8.9 million barrels last week, while distillate holdings fell 2.4 million barrels and gasoline supplies dropped 1.6 million barrels.

Later Wednesday, the U.S. Department of Energy will release its more closely-watched estimates of U.S. stocks.

On the New York Mercantile Exchange, crude oil for delivery in April rose 0.04% to trade at $49.30 a barrel.

Overnight, crude oil futures shook off earlier weakness to hit the highest levels of the session on Tuesday, after euro zone finance ministers agreed on a deal to extend Greece’s bailout by four months.

The Eurogroup approved Greece's list of reform proposals earlier in the day, paving the way for a four-month extension of the country's bailout program.

On the ICE Futures Exchange in London, Brent oil for April delivery hit an intraday low of $58.13 a barrel, before recovering to trade at $60.09 during U.S. morning hours, up $1.19, or 2.01% on Tuesday

Industry research group Baker Hughes (NYSE:BHI) said Friday that the number of rigs drilling for oil in the U.S. fell by just 37 last week, the smallest weekly drop this year and compared to a decline of 84 rigs in the preceding week.

The number of rigs drilling for oil in the U.S. totaled 1,019, the lowest since August 2011. The number of oil rigs has declined in 16 of the last 19 weeks since hitting an all-time high of 1,609 in mid-October.

However, oil supplies in the U.S. stand at the highest level in at least 80 years, indicating that cheap prices have yet to affect output.


Oil prices have fallen sharply in recent months as OPEC resisted calls to cut output, while the U.S. pumped at the fastest pace in more than three decades, creating a glut in global supplies.