By Gina Lee
Investing.com – Oil was up Thursday morning in Asia alongside an improving economic outlook and a sharp drop in U.S. fuel stocks, although a surge in crude oil inventories capped the black liquid’s gains.
Brent oil futures rose 0.80% to $68.44 by 11:22 PM ET (4:22 AM GMT) and WTI futures were up 0.79% to $64.95.
Wednesday’s U.S. crude oil supply data from the U.S. Energy Information Administration (EIA) showed a build of 13.798 million barrels for the week to Mar. 5. Forecasts prepared by Investing.com predicted an 816,000-barrel build, while a 21.563-million-barrel build was reported during the previous week.
Supply data from the American Petroleum Institute released a day earlier indicated a build of 12.792 million barrels.
“Gasoline stocks fell... (which) provided the bullish offset and eventually sent oil prices higher on the strong demand for end products, hence an economic recovery … given the powerful signals from the U.S. re-opening narrative, it still suggests that the path of least resistance for oil prices is higher,” Axi Chief Global Markets Strategist Stephen Innes told Reuters.
EIA data also said that U.S. gasoline stocks fell by 11.869 million barrels in the week to Mar. 5.
The U.S. oil industry continues to feel the impact of an unexpected cold snap that hit Texas and the surrounding areas in February, which led to stalled refining and forced production shutdowns in the area. Globally, stocks also reportedly remain ample with crude oil in storage at major land and sea hubs rising during the previous week.
In a further boost for fuel demand, however, the U.S. House of Representatives gave its final approval on Wednesday to a $1.9 trillion stimulus package. The bill is now headed to President Joe Biden’s desk and is expected to be passed before Sunday.
Meanwhile, Saudi Arabia’s foreign minister, Prince Faisal bin Farhan Al Saud, on Wednesday vowed that his country would take deterrent action to protect its oil facilities. His comments come after an attack on the Ras Tanura facility by Yemen’s Iran-backed Houthi rebels at the beginning of the week.