WASHINGTON—This week, oil prices increased for the first time in two sessions, the Wall Street Journal reports. A weekly government report registering a smaller rise in U.S. inventories of crude oil triggered a corresponding rise in oil prices.
U.S. crude futures rose 3.4% to hit $57.11 a barrel, while Brent jumped 2.4% to $62.40 a barrel. U.S. crude stockpiles accelerated 1.4 million barrels during the week that ended November 15, according to the U.S. Energy Information Administration (EIA). The American Petroleum Institute (API) had forecast an increase of about 6 million barrels. Other analysts had predicted a bump of 1.1 million barrels.
“Oil prices are rising after the EIA crude oil inventory report showed a much smaller build than yesterday’s API [predicted] build,” Edward Moya, senior market analyst at Oandaz, wrote.
Government data showing Oklahoma stockpiles dropped 2.3 million barrels contributed to the upswing in oil prices as well. Analysts say more volatility could be coming in the oil market amid concerns of lower demand and excess supply. “Today’s strong upside reversal could easily be negated by any additional negative headlines on the U.S.-China trade front,” according to analysts at Ritterbusch & Associate.