Oil jumped on Wednesday after a coordinated move by central banks to address pressures in global money markets, but an unexpected build in U.S. crude stockpiles reined in the gains in choppy trade.
Brent crude futures were up 72 cents $111.54 U.S. It earlier reached the day's high of $112.03 U.S. Crude futures in the States rose by $1.47 to $101.26 U.S. a barrel. Both contracts reached their highest since November 17.
The unexpected 3.93 million barrels rise in U.S. weekly crude inventories briefly pushed prices lower, but concerted global action by several central banks continued to lend support to price.
U.S. crude oil and distillate inventories posted unexpected and hefty builds last week, with crude stocks for the week ending November 25 up 3.93 million barrels versus analysts forecast for a 200,000-barrel draw, the report from the Energy Information Administration (EIA) showed.
But prices continued to find support after the central banks of the United States, the euro-zone, Japan, Canada, Britain and Switzerland launched a coordinated global action to provide liquidity to the financial system, lowering the price on existing dollar swaps, and pushing the dollar lower.
Oil, priced in dollars, tends to benefit from a weaker U.S. currency, as it becomes more affordable to holders of other currencies.
A move by China to cut reserve requirements also supported prices, while better-than-expected U.S. employment data added to more bullish sentiment.
The pace of job growth in the private sector accelerated in November, with U.S. employers adding 206,000 jobs, a report by a payrolls processor showed on Wednesday.
The ADP National Employment Report surpassed economists' expectations for a gain of 130,000 jobs.
