Investing.com - U.S. crude oil inventories fell less than expected last week, the Energy Information Administration said in its weekly report on Wednesday.
The EIA data showed that crude oil inventories decreased by 0.497 million barrels in the week to Dec. 14.
That was compared to forecasts for a stockpile draw of 2.44 million barrels, after a drop of 1.21 million barrels in the previous week, amounting to a second-straight weekly decline.
The EIA report also showed that gasoline inventories rose by 1.77 million barrels, compared to expectations for a build of 1.20 million barrels, while distillate stockpiles decreased by 4.24 million barrels, compared to forecasts for a gain of 0.57 million.
U.S. crude prices were trading up 2.36% to $47.70 a barrel by 10:35 AM ET (15:35 GMT), compared to $47.69 prior to the publication.
London-traded Brent crude futures gained 1.97% to $57.37 a barrel, compared to $57.34 ahead of the release.
Ahead of the release, oil prices had already been climbing as the Saudi Arabian energy minister Khalid Al-Falih said OPEC and its allies led by Russia will surely extend their agreement to cut production.
“We will meet in April and I’m certain that we will extend it,” Al-Falih told reporters in Riyadh, referring to the next meeting of OPEC+ members to discuss whether to extend the December agreement to reduce output. “We need more time to achieve the result.”
Oil prices have fallen more than 30% since the beginning of October as crude supply from the Middle East, Russia and the United States has outstripped demand, filling oil tanks and increasing worries over the global supply glut even as trade issues between the U.S. and China remain unresolved.
“The market’s judgment on the most recent cuts deal, even before it starts, is now pretty clear -- it was too vague, lacked some credibility, and the April review date suggested it might be too short,” said Derek Brower, a director at consultant RS Energy Group. “So it makes sense that producers are already fretting. But it is also pretty early to be saying what OPEC will do in April - lots can change by then.”
"The market is experiencing price carnage, maximum pain and considerable downside pressure," said Robin Bieber, analyst at London brokerage PVM Oil. "The trend is down."
-- Reuters contributed to this report