Oil Rebounds Following Mixed U.S. Inventory Data Last Wk

SECAUCUS, NJ (DTN) – Oil futures edged higher on Thursday (11/13)  reversing the 4% price slump recorded in the previous session, after Energy Information Administration data showed a large build in crude but encouraging demand for fuel.

“There was definitely some short covering to yesterday’s selloff and the gasoline demand on the total products side was much better seasonally,” John Kilduff, partner at New York energy hedge fund Again Capital, told DTN.

The Energy Information Administration reported that commercial crude stocks increased by 6.4 million bbl to 427.6 million bbl during the week ending November 7, adding to the prior weekly build of 5.2 million bbl.

But total motor gasoline inventories fell by 900,000 bbl to 205.1 million bbl in the profiled week, following a 4.7 million bbl slump in the prior week.

Distillate fuel oil inventories also fell, sliding by 600,000 bbl to 110.9 million bbl, after a similar volume of decline the week before.

The NYMEX WTI contract for December delivery settled Thursday’s session up $0.20 at $58.69 bbl. The ICE Brent for January delivery advanced $0.36 to $63.07 bbl.

December RBOB gasoline futures settled up $0.0043 at $1.9597 gallon. Distillate futures, however, bucked the broader rise of the NYMEX complex, with front-month ULSD futures closing  down $0.00169 at $2.4647 gallon.

The U.S. Dollar Index softened by 0.369 points to 99.005 against a basket of foreign currencies.

On Wednesday (11/12), oil future prices plummeted 4% following the OPEC’s monthly report, which indicated that crude supplies were in a surplus of 500,000 bbl for the third quarter – compared with its prior estimate of a 400,000-bpd shortage.

The Paris-based International Energy Agency, in its monthly report issued Thursday, predicted an even higher global surplus of 4.09 million bpd next year, from a previous estimate of 3.97 million bpd.