Oil prices rose on Feb. 9, supported by an unexpected draw in U.S. gasoline inventories, although bloated crude supplies meant that fuel markets remain under pressure.
Benchmark Brent crude was up 50 cents a barrel (bbl) at $55.62/bbl by 7:25 a.m. CT (13:25 GMT). West Texas Intermediate (WTI) light crude was 60 cents higher at $52.94/bbl.
The U.S. Energy Information Administration (EIA) said on Feb. 8 gasoline inventories fell by 869,000 bbl last week to 256.2 MMbbl, vs. analyst expectations for a 1.1 MMbbl gain.
The fall in gasoline stocks suggested U.S. consumption was stronger than expected and may be healthy enough to support prices at a time when most fuel oil markets are very well stocked.
"U.S. gasoline draws are supporting prices today," said Tamas Varga, senior analyst at London brokerage PVM Oil Associates. "They are an indication of stronger U.S. demand."
The EIA report also said that U.S. commercial crude inventories rose by 13.8 MMbbl to 508.6 MMbbl.
U.S. bank Goldman Sachs said high fuel inventories and rising U.S. crude production meant oil markets would be over-supplied for some time, but that they would drain gradually.
"We do not view the recent excess U.S. builds as derailing our forecast for a gradual draw in inventories, with in fact the rest of the world already showing signs of tightness," the bank said in a note to clients.
"The draws that we expect will start from a high base," the bank said. "U.S. production has also rebounded ... and we view the faster shale rebound as creating downside risk to our 2018 WTI price forecast of $55 per bbl, but not to our expectation that the global oil market will shift into deficit in 1H 2017."
High oil inventories have been undermining efforts by OPEC and other producers including Russia to tighten the market by cutting production.
OPEC and other big exporters have agreed to trim output by almost 1.8 MMbbl/d during the first half of this year in order to prop up prices and rebalance the market.
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