U.S. crude oil inventories rose more than expected last week, the Energy Information Administration said in its weekly report on Wednesday.
The EIA data showed that crude oil inventories increased by 4.85 million barrels in the week to November 16.
That was compared to forecasts for a stockpile build of 2.50 million barrels, after a build of 10.27 million barrels in the previous week.
After a 7% slide the previous day, oil prices had already been bouncing back prior to the report after U.S. President Donald Trump said the U.S. remains a “steadfast partner” with Saudi Arabia despite the killing of journalist Jamal Khashoggi.
On Tuesday, US President Donald Trump released a statement in which he signalled that his administration would not take strong action against Saudi Arabia for the murder of journalist Jamal Khashoggi.
Reports cited Trump as saying outside the White House on the same day, “If we broke with them [Saudi Arabia], I think your oil prices would go through the roof.”
On Wednesday, the president thanks Saudi Arabia for the recent decline in prices and urged even cheaper oil.
OPEC members are set to meet on Dec. 6 in Vienna, with a production cut expected to be agreed with non-OPEC members led by Russia in order to prop up the recent sharp selloff. Recent reports suggested that the cartel had moved from considering a reduction of 1 million barrels per day to 1.4 million.
Source : Investing