Investing.com - U.S. oil stockpiles rose much less than the market was expecting, the Energy Information Administration reported Thursday, giving the market another reason to keep prices higher.
“It looks like the theme in oil has turned decidedly bullish within just over a week of prices plunging to a one-year low,” Investing.com analyst Barani Krishnan said. “From the squeeze in Libyan supply to Chinese economic stimulus, everything’s looking up now for oil bulls.”
Libya’s U.N.-recognized government withdrew this week from peace talks with a rebel faction led by strongman Khalifa Haftar, leaving production from Africa’s largest oil exporter impeded as a decade-long civil war worsened.
Libya’s National Oil Corporation says Libyan oil production has reportedly dropped to 123,500 bpd from pre-current crisis levels of 1.2 million bpd.
WTI futures were up 1.2% in midday trading.
“We have, however, come off the day’s highs, possibly due to some position realignments after the data,” Krishan said. “But I’m convinced we’ll be testing higher resistance levels soon.”
Oil inventories rose by 414,000 barrels for the week ended Feb. 14, the EIA said. That compared with expectations for a build of 2.5 million barrels, according to forecasts compiled by Investing.com.
Gasoline inventories dropped unexpectedly by about 2 million barrels, versus forecasts for a rise of 435,000 barrels. Distillate stockpiles declined by 636,000 barrels, compared with expectations for a drawdown of 1.46 million barrels.
“Gasoline drew five-times more than expected and crude exports jumped by about 600,000 barrels per day.” Krishnan added. “The only thing that went the way of oil bears was the distillates draw, which was about 40% below expectations."