Oil prices on Thursday, February 23, leaped after U.S. data showed a surprise decline in inventories, suggesting that a global glut may be ending after moves by OPEC to cut production.
Benchmark Brent crude oil LCOc1 was up 70 cents a barrel at $56.54 by 1025 GMT, recovering from a drop of 82 cents on Wednesday. U.S. light crude CLc1 was 70 cents higher at $54.29 a barrel
Both benchmarks are near the top of relatively narrow $4 ranges that have contained trade so far this year, reflecting a period of low volatility since the Organization of Petroleum Exporting Countries and other exporters agreed to cut output.
OPEC and producers including Russia aim to reduce production by around 1.8 million barrels per day (bpd) in an attempt to drain an oversupply that has kept prices depressed for more than two years.
So far OPEC appears to be sticking to its deal but other producers, notably U.S. shale companies, have increased output, helping swell stocks in the United States, the world’s biggest oil consumer.
Industry data on Wednesday showed U.S. crude inventories fell by 884,000 barrels in the week to Feb. 17 to 512.7 million, compared with analyst expectations for an increase of 3.5 million barrels. [API/S]
U.S. gasoline and distillate fuel stocks also fell, the American Petroleum Institute (API) said, Reuters reports.
