US Oil stalls near $46 mark after staging rebound from $44.5 on positive crude inventories report released by EIA in Wednesday.
WTI futures for September delivery gained 0.35% consolidating below weekly resistance level of $46. Brent futures saw bidding activity rising 0.38% to 47.35 per barrel.
Prices tumbled to two-month low in Wednesday before rapid recovery due to higher than expected contraction of US Oil stockpiles and substantial increase in gasoline reserves.
EIA said in its weekly report commercial oil stocks in the country decreased to 2.342 million barrels during the week from 9 to 15 July. United States oil inventories now average 519.5 million barrels and are at historically high levels for this time of year. Investors expect stockpiles to decline by 2.1 million barrels with the American Petroleum Institute in Tuesday claiming reservers shrank by 2.3 million barrels. It is worth to note that US oil reserves have been declining for nine consecutive weeks signaling about resurgence of crude output in US.
Oil reserves in biggest storage of US, Cushing rose by 189K barrels although it was expected to shrink by 100K.
While gasoline stocks rose by 0.91 million barrels, distillate stocks declined slightly, by 0.21 million barrel. A week earlier, stockpiles of distillates in the country jumped more than 4.0 million barrels, which was the biggest growth in more than five months. Analysts had expected gasoline stocks to decline by 0.5 million barrels.
Meanwhile, the volume of oil production in the United States rose slightly by 9K to 8.494 million barrels per day. Oil production in the country is still more than 1 million barrels a day less than last summer, when it peaked at 9.604 million barrels per day, record high level for 44 years.