This post was originally published on this site.
Oil prices rose for a sixth consecutive session on Wednesday, supported by signs of robust US economic growth and concerns about potential supply disruptions from Venezuela and Russia.
Brent (BZ=F) crude futures climbed 32 cents, or 0.52%, to $62.19 a barrel at the time of writing. US West Texas Intermediate (CL=F) added 32 cents, or 0.55%, to $58. a barrel.
Both benchmarks have gained about 6% since December 16, when prices fell to near five-year lows.
Tony Sycamore, analyst at IG, said: “What we’ve seen over the past week is a combination of position squaring in thin markets, after last week’s breakdown failed to gain traction, coupled with heightened geopolitical tensions, including the US blockade on Venezuela and supported by last night’s robust GDP data.”
Data released on Tuesday showed the world’s largest economy expanded at its fastest pace in two years in the third quarter, driven by strong consumer spending and a sharp rebound in exports.
“In that context, this morning’s API inventory build was easy to overlook. However, it likely encourages sellers to step in should the rally push toward $60.00 in the coming sessions,” Sycamore said.
US crude inventories rose by 2.39m barrels last week, according to market sources citing figures from the American Petroleum Institute. Gasoline stocks increased by 1.09m barrels, while distillate inventories rose by 685,000 barrels.