Oil prices rose on Wednesday, boosted by concerns about supply disruptions following U.S. sanctions on Venezuela’s oil industry, however, they were pegged back by uncertainty over the global economy.
Futures extended gains after weekly data showed a smaller-than-anticipated jump in U.S. crude inventories and an unexpected drop in gasoline stockpiles.
As the clock approached noon in the Eastern time zone on Wednesday, U.S. West Texas Intermediate crude futures rose $1.22, or 2.3%, to $54.53 U.S. per barrel. International Brent crude oil futures were up $1.13, or nearly 1.8%, at $62.45 per barrel.
The Energy Information Administration reported Wednesday that crude inventories rose by 919,000 barrels in the last week, compared to an increase of 3.2 million barrels expected by analysts.
Meanwhile, gasoline stocks fell by 2.2 million barrels, compared with analysts’ expectations for a 1.9 million-barrel gain. The EIA also said distillate stockpiles, which include diesel and heating oil, shrank by 1.1 million barrels, versus expectations for a 1.4 million-barrel drop.
Washington on Monday announced export sanctions against Venezuela’s state-owned oil firm PDVSA, limiting transactions between U.S. firms that do business with that South American country through purchases of crude oil and sales of refined products.
President Nicolas Maduro said on Wednesday he was ready for talks with the opposition although he ruled out snap elections.
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