Petroleum prices scaled back from their gains on Wednesday after data from Washington showed a surprise rise in U.S. crude inventories as gasoline production at refineries decreased amid slumping demand for the fuel.
Weekly information released Wednesday by the Energy Information Administration (EIA) showed U.S. crude inventories rose by 1.6 million barrels in the week through March 31 to a total of 535.5 million. Analysts had forecast a tumble of 435,000 barrels
EIA went on to say crude stocks at the Cushing, Oklahoma, delivery hub rose by 1.4 million barrels
Futures earlier hit a one-month high near $55.00 U.S. a barrel after industry data showing a drop in crude stocks, which raised hopes that supply cuts led by the Organization of the Petroleum Exporting Countries were clearing a glut. An outage at the largest U.K. North Sea oilfield lent support.
Brent crude had risen 19 cents to $54.36 U.S. a barrel late morning Wednesday having earlier risen to $55.09, its highest level since March 8. U.S. crude was up 16 cents at $51.19.
EIA data showed gasoline supplied for the week — a measure of demand — fell by 279,000 barrels a day.
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