Crude-oil prices held their ground above $97 U.S. a barrel Wednesday, though they pared gains on a hefty jump in last week’s supplies, while gasoline futures rallied past $3 a gallon on the heels of an unexpected drop in inventories.
The oil market saw overall gains as the dollar weakened and as traders awaited a monetary-policy decision by the U.S. Federal Reserve.
Crude oil for March delivery traded at $97.65 U.S. a barrel, up eight cents, or 0.1%, on the New York Mercantile Exchange. It was trading around $97.70 U.S. before the supply data, though briefly turned lower after them.
The weekly report from the U.S. Energy Information Agency says crude supplies rose 5.9 million barrels for the week ended Jan. 25. Analysts polled by Platts expected a 2.5-million-barrel climb.
The American Petroleum Institute late Tuesday said crude stocks rose by 4.2 million barrels.
Motor gasoline supplies, however, fell by 1 million barrels, while distillate stocks declined by 2.3 million barrels, the EIA said. Analysts expected no change to gasoline stocks and a fall of 1 million barrels in distillate supplies.
The February gasoline contract climbed six cents, or 2%, to $3.03 U.S. a gallon. Front-month gasoline futures haven’t settled above $3 since mid-September. February heating oil traded at $3.12 U.S. a gallon, up one cent, or 0.4%.
London-traded benchmark Brent crude for March also rose 52 cents, or 0.5%, to $114.88 U.S. a barrel on ICE Futures.
Dollar-denominated oil prices also saw support with the euro "ripping higher on news that European banks are paying back funds to the European Central Bank, raising hopes of a return to normalcy and a shuffling away from further crises," said one expert.
Still, both Nymex and Brent futures stayed within a trading range of just over a U.S. dollar a barrel Wednesday, ahead of a Fed policy decision due later.
