Brent crude and West Texas Intermediate crude oil prices lift despite another rise in US crude inventories

 
Francesca Washtell
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High Oil Prices Continue To Drive Gas Prices Steadily Upwards
Oil has recovered from losses yesterday to trade up this morning (Source: Getty)

Oil prices lifted this morning despite another build in US crude inventories.

Stockpiles in the US rose by 2.4m barrels to 485m barrels last week, despite refineries hiking output and imports falling, according to data released yesterday by the US Energy Information Administration (EIA).

Earlier estimates suggested the rise would be a much smaller 400,000 barrels.

Although prices dropped on the news, this morning Brent crude lifted 30 cents, or 0.65 per cent, to $46.66, while US benchmark West Texas Intermediate crude rose 13 cents, or 0.29 per cent, to $45.40.

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Like many markets yesterday, oil had initially dropped after Donald Trump was announced the winner of the US Presidential election. By the end of the day, and before the EIA data was released, it had almost fully recouped earlier losses.

"Investors have brushed aside the shock of the Trump victory in the U.S. election," ANZ bank said.

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BMI Research said Trump's policies, which are expected to be in favour of the oil and gas industry, might mean US production of oil and gas could recover at a faster rate in 2017 "as developers grow more encouraged".

Oil's price is still less than half of what it was in mid-2014, weighed by a global supply glut, and Brent crude has not risen back above $50 since inventory data in late October showed a giant rise in US stockpiles.

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