Oil Rises After Smaller Buildup in Inventories and Soft USD

U.S. crude stocks rose less then expected last week, while gasoline stocks rose by more than analysts had forecast as refineries cut output, data from the Energy Information Administration showed on Wednesday.

Crude inventories rose by 1.8 million barrels in the week to Feb. 9, short of analysts’ expectations for an increase of 2.8 million barrels.


West Texas Intermediate graph

“With a big drop in refining activity as we descend deeper into maintenance season, we have seen a third consecutive build to crude stocks,” said Matt Smith, director of commodity research at ClipperData in Louisville, Kentucky.

U.S. crude futures rose on the news, with West Texas Intermediate up 42 cents to $59.61 a barrel as of 10:45 a.m. EST (1545 GMT). Brent gained 44 cents to $63.16 a barrel.

Gasoline stocks rose by 3.6 million barrels, more than double the 1.2 million-barrel gain forecast by analysts polled by Reuters.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza