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Business News/ Market / Stock-market-news/  Oil up $2, extends rally after neutral EIA crude build report
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Oil up $2, extends rally after neutral EIA crude build report

Brent up $2.25 at $49.05 a barrel, US crude rises $2.50 to $45.70 a barrel

The EIA reported an inventory drop of 785,000 barrels at the Cushing, Oklahoma, delivery hub for US crude futures. . Photo: AFPPremium
The EIA reported an inventory drop of 785,000 barrels at the Cushing, Oklahoma, delivery hub for US crude futures. . Photo: AFP

New York: Oil was $2 a barrel higher on Wednesday after the US government reported a crude inventory build squarely within market expectations, extending gains after an earlier rally triggered by what the market described as a big algorithmic trade.

The US Energy Information Administration (EIA) said crude stockpiles rose 3.4 million barrels last week, matching analysts’ expectations in a Reuters poll.

The EIA also reported an inventory drop of 785,000 barrels at the Cushing, Oklahoma, delivery hub for US crude futures. .

Stockpiles of gasoline and distillates, which include diesel, meanwhile, fell more than expected.

“The market was looking for more bearish information and got a neutral report," said Scott Shelton, oil broker and commodities specialist with ICAP in Durham, North Carolina.

Global benchmark Brent was up $2.25 at $49.05 a barrel by 11:06 am EDT (1506 GMT), after hitting a session high at $49.23.

US crude rose $2.50 to $45.70 a barrel.

Prices had jumped more than $1 before the EIA data on a deal by a big algorithmic trader, the market said. Reuters

Additional reporting by Amanda Cooper in London and Aaron Sheldrick in Tokyo.

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Published: 28 Oct 2015, 09:53 PM IST
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