Despite data showing a jump in U.S. crude inventories in the week ended October 11, crude oil prices rebounded after early weakness and settled higher on Thursday.
Oil prices moved up due largely to the development on the Brexit front, where the U.K. and the European Union have reached an agreement on a draft deal for the U.K.’s exit from the EU, and the dollar’s weakness.
West Texas Intermediate Crude oil futures for November ended up $0.57, or about 1.1%, at $53.93 a barrel.
On Wednesday, WTI crude oil futures for November ended up $0.55, or about 1%, at $53.36 a barrel.
According to the data released by the Energy Information Administration, crude stockpiles in the U.S. jumped 9.3 million barrels last week, more than three times the expected increase.
Gasoline inventories dropped by 2.56 million barrels last week, more than twice the expected decline, while distillate inventories were down 3.8 million barrels, again substantially more than what was forecast.
The American Petroleum Institute’s weekly report showed late Wednesday that U.S. crude inventories soared by 10.5 million barrels in the week to Oct. 11.
The latest batch of U.S. economic data showing a drop in industrial production, building permits and Philadelphia area manufacturing activity have raised concerns about global growth and outlook for the energy demand.
Still, oil prices rose as possibility of a U.S.-China trade deal, the positive news on Brexit and the prospects of OPEC continuing to cut crude outputs outweighed concerns about growth and demand.