Oil prices rose for the 1st time in three days on January 11, 2017, despite the U.S. government data showing a huge weekly build in U.S. crude and fuel inventories.
Oil prices edged up on Wednesday, lifted by reports of Saudi supply cuts to Asia, and an early Wall Street rally ahead of a news conference by U.S. President-elect Donald Trump, according to Reuters:
“Wall Street shares rose early ahead of the speech in which Trump was expected to provide more details about his plans for the world’s largest economy. Once Trump started speaking, stocks pared gains and the S&P 500 index slipped into negative territory,” the report states.
Brent was up $1.42, or 2.7 percent, at $55.06 a barrel by 11:17 a.m. EST. U.S. West Texas Intermediate (WTI) rose $1.30, or 2.6 percent, to $52.12 per barrel.
That put both contracts on track for their biggest daily percentage gains since Dec. 1. On Tuesday, Brent and U.S. crude futures settled at their lowest levels in a month.
“We expect some bullish OPEC rhetoric to ramp up in an attempt to neutralize the bearish vibes that have emanated from the recent production increases indicated out of Libya, Iran, Iraq and Nigeria,” Jim Ritterbusch, president of Chicago-based energy advisory firm Ritterbusch & Associates, said in a note.
Saudi Arabia, the world’s top oil exporter, has told some of its Asian customers that it will reduce their crude supplies slightly in February.