Oil prices rose on Wednesday, rebounding from a brief decline after U.S. government data showed a large rise in gasoline stocks and as the focus shifts to a potential output-curbing deal from the Organization of the Petroleum Exporting Countries later this year.
Information released by the Energy Information Administration (EIA) showed U.S. commercial crude stockpiles fell by 1.9 million barrels to a total of 502.7 million barrels in the week through Sept. 23. Analysts had forecast a three-million-barrel build.
The drawdown in crude stocks was offset by a two-million-barrel build in gasoline stockpiles, compared with expectations in a poll for a gain of 178,000 barrels. Higher stockpiles of gasoline typically reduce demand for feedstock crude oil.
Brent crude rose 69 cents, or 1.5%, to $46.66 U.S. a barrel by early Wednesday afternoon, trading at roughly the same level as prior to the EIA data. U.S. West Texas Intermediate (WTI) crude was up 51 cents, or 1.1% at $45.18 U.S. a barrel.
Although chances of a deal being finalized in Algeria today are slim, OPEC ministers might still agree an oil output-limiting deal later this year.
Saudi Energy Minister Khalid al-Falih said on Tuesday Iran, Nigeria and Libya would be allowed to produce "at maximum levels that make sense" as part of any output limits which could be set as early as the next OPEC meeting in November.
That represents a strategy shift for the government in Riyadh, which previously said it would reduce output only if every other OPEC and non-OPEC producer followed suit. Iran has said it should be exempt from such limits because its production is recovering after the lifting of European Union sanctions earlier this year.
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