Oil prices were roughly flat on Wednesday as weekly U.S. government data showed a larger-than-expected rise in crude stockpiles south of the border, but substantial declines in fuel inventories as refineries hiked output.
Information released Wednesday by the U.S. Energy Information Administration showed crude inventories rose by five million barrels in the week ending March 9, compared with analysts' expectations for an increase of two million barrels.
Gasoline stocks fell by 6.3 million barrels, compared with analysts' expectations in a poll for a 1.2 million-barrel drop. The EIA said distillate stockpiles, which include diesel and heating oil, fell by 4.4 million barrels, versus expectations for a 1.5-million-barrel drop.
Brent crude was last up eight cents at $64.72 U.S. a barrel, climbing from an earlier low of $64.43. U.S. West Texas Intermediate (WTI) futures were up six cents at $60.77 a barrel.
Crude futures rose earlier on strong Chinese factory activity and a decline in the country's crude production.
China reported a 7.2% year-on-year increase in industrial output in the first two months of the year, roundly beating expectations. In a dose of support for oil bulls, the data showed crude production fell 1.9%.
China, being the world's largest importer of commodities, reported its oil production in January and February slipped to about 3.77 million barrels per day (bpd), while the amount of crude processed by its refineries rose 7.3% to 93.4 million bpd, suggesting strong import demand.
