Oil prices gained ground on Wednesday after government data showed U.S. crude stockpiles tumbled more than expected.
Data revealed Wednesday morning by the U.S. Energy Information Administration showed U.S. commercial crude inventories fell by six million barrels in the week to Sept. 29, compared with analysts' expectations for a decrease of 756,000 barrels.
EIA further went on to say gasoline stocks rose by 1.6 million barrels, compared with analyst expectations for a 1.1-million-barrel gain. Distillate stockpiles, which include diesel and heating oil, fell by 2.6 million barrels, versus expectations for a 1.8-million-barrel drop.
As a result, U.S. West Texas Intermediate crude futures rose 14 cents to $50.56 U.S. per barrel mid-morning Wednesday, having fallen below $50.00 earlier in the session. Brent crude futures were up four cents at $56.04 U.S. a barrel.
The oil market has historically faced headwinds in the final three months of the year. Crude futures traded positive 40% of the time in the fourth quarter over the last 25 years, according to a recent study.
Citigroup, however, forecasts WTI at $54 U.S. a barrel and Brent at $58 in the fourth quarter. One expert told the media the momentum in the physical and financial markets will boost oil prices.
