Oil ends up; refined products draw offset U.S. crude build
By Barani Krishnan and Ethan Lou
NEW YORK (Reuters) - Oil prices settled up on Thursday after a U.S. government report showing hefty draws in diesel and gasoline offset the first crude inventory build in six weeks.
Crude prices fell initially when the U.S. Energy Information Administration (EIA) said crude stocks swelled 4.9 million barrels in the week ended Oct. 7. It was the first crude build since the end of August and was far above a 700,000-barrel rise forecast by analysts in a Reuters poll. [EIA/S]
Prices bounced back as the market turned its attention to product inventory drawdowns in the same EIA data. The EIA reported a drop of 3.7 million barrels for distillates, which include diesel and heating oil, and 1.9 million barrels decline for gasoline.
Analysts had expected distillates to draw by just 1.6 million barrels and gasoline to decline by 1.5 million.
Brent crude LCOc1 settled up 22 cents, or 0.4 percent, at $52.03 per barrel.
U.S. crude CLc1 ended up 26 cents, or 0.5 percent, at $50.44.
"There is a lot of seasonality in this data," Scott Shelton, energy futures broker at ICAP in Durham, North Carolina, said, referring to the EIA inventory report.
Shelton said crude builds were common this time of year as U.S. refineries headed into maintenance. Continued...