Prices for petroleum were broadly stable on Wednesday, moving in and out of negative territory after industry data showed U.S. crude stockpiles rose more than expected last week, though supply concerns and a weaker dollar gave support.
Brent crude futures for December were up 12 cents, or 0.1%, at $93.64 U.S. a barrel, while U.S. West Texas Intermediate (WTI) crude futures for December were up 37 cents, or 0.4%, at $85.69 a barrel.
A weaker U.S. dollar sent a bullish signal, making oil cheaper for holders of other currencies.
But U.S. crude inventories rose by about 4.5 million barrels in the week ended Oct. 21, according to market sources citing figures from the American Petroleum Institute, an industry group, above expectations from five analysts polled by Reuters.
Rising stockpiles reinforce fears of a global recession that would further cut demand, weakness in which has also been apparent in softer Chinese crude import data.
But ongoing supply constraints, highlighted by the International Energy Agency’s head warning of the “first truly global energy crisis”, gave prices a floor.
Saudi Aramco’s CEO said there were many uncertainties ahead of planned European embargoes on crude and refined products from Russia, a member of the OPEC+ alliance led by Saudi Arabia, adding however that Russian oil still found buyers.
U.S. President Joe Biden announced a plan last week to sell off the rest of a record release from the nation’s emergency oil reserve by year-end as he tries to dampen high gasoline prices.
Meanwhile Biden, facing criticism over high inflation, has warned that Saudi Arabia would face consequences for aligning with Russia and agreeing to reduce crude supply.
