Crude Rebounds After US Supply Report

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Prices for both crude benchmarks were seen trading slightly higher on Thursday after a report showed a huge rise in crude stockpiles. 

Prices for the North American West Texas Intermediate (WTI) crude traded 0.31% higher to $47.96 per barrel on the New York Mercantile Exchange at the time of writing. The European benchmark Brent crude gained 0.23% to $51.89 a barrel on the London-based ICE Futures Europe exchange.

A report released by the Energy Information Administration (EIA) showed that crude reserves in the US rose higher-than-expected by approximately 3.1 million barrels in the week ending October 2 to 461 million barrels. The report also revealed output of US oilfields rose to 9.17 million barrels after declining for seven weeks.

Gasoline inventories increased by 1.9 million barrels during the same week, compared to the 470,000 rise projected by analysts.

Earlier the week, the EIA said the global oil demand for next year would climb by the fastest rate in six years after OPEC Secretary-General Abdulllah al-Badri said the oil market is still oversupply by almost 200 million barrels.

Meanwhile, the weakened US dollar fell 0.02% lower to 95.477 on Thursday, boosting crude prices higher.