REUTERS
Oil prices are increasing after the announcement of a reduction in U.S. oil inventories, the first time U.S. oil stocks have dropped in two months, Reuters has reported.
This morning Brent futures rose up by $0.36 to $56.75 a barrel, while WTI futures were up by $0.62, to $48.91. On Tuesday, both benchmarks fell more than 3% due to a stronger dollar.
Last week oil reserves in the United States shrank by 404,000 barrels, to 439.4 million barrels, against a projected increase of 4.4 million barrels, according to the American Petroleum Institute. Stocks at the distribution center in Cushing, Oklahoma, increased by 2.2 million barrels.
"The sell-off was overdone," said Jonathan Barratt, chief investment officer at Sydney's Ayer's Alliance.
"I think it was more of a knee-jerk reaction because of the substantial build [of oil stocks] at Cushing," he told Reuters.
According to him, the latest economic statistics are encouraging, and if the price of WTI does not drop below $48.50, now is a good time to buy.
On Wednesday, the market may be affected by publication of statistics from China, one of the largest oil consumers, including reports on industrial production and retail sales in February.