Oil prices pared gains after an Energy Department report showed that U.S. inventories climbed and gasoline demand tumbled to the lowest level in a decade.
Futures dropped as much as 0.4% as supplies climbed 4.18 million barrels to 338.9 million last week, the report showed. A 2.6 million-barrel gain was forecast, according to analysts surveyed by Bloomberg News. Gasoline stockpiles rose 3.02 million barrels to 230.1 million. Demand for the fuel dropped to 7.97 million barrels a day.
Crude oil for March delivery rose seven cents to $98.55 U.S. a barrel late Wednesday morning on the New York Mercantile Exchange. The contract traded at $98.95 U.S. before release of the inventory report at 10:30 a.m. ET in Washington.
Brent crude oil for March settlement climbed $1.23, or 1.1%, to $112.21 U.S. a barrel on the London-based ICE Futures Europe exchange.
Oil also fell after companies in the U.S. added fewer workers than projected. A report from Roseland, New Jersey-based ADP Employer Services showed a gain of 170,000 workers in January.
The increase followed a revised 292,000 rise the prior month that was smaller than previously reported. The median estimate in a Bloomberg News survey of 40 economists called for an advance of 182,000.
