Oil prices, on Wednesday, March 15, made recovery from three-month after industry data showed a surprise drawdown in U.S. crude stockpiles and as Goldman Sachs put a positive spin on OPEC’s compliance with output cuts.
Brent futures were up 71 cents, or 1.4 percent, at $51.63, after settling down 43 cents at $50.92 on Tuesday, their lowest finish since November.
U.S. West Texas Intermediate crude CLc1 was trading up 81 cents, or 1.7 percent, at $48.53 a barrel by 0749 GMT. That came after the contract fell for a seventh session on Tuesday in its longest losing streak since January 2016.
U.S. crude stocks fell by 531,000 barrels last week, industry group the American Petroleum Institute said on Tuesday after settlement. [API/S]
That compared with analyst expectations for an increase of 3.7 million barrels. If the draw is confirmed by government data on Wednesday, it would be the first drawdown after nine consecutive builds.
U.S. gasoline and distillate inventories drew more than expected, the data also showed.
Oil tumbled on Tuesday after OPEC reported a rise in global crude stocks and a surprise output jump from its biggest member, Saudi Arabia, further pressuring prices that have erased nearly all of their gains since OPEC announced output cuts in November.