Crude oil prices rose on Wednesday after news US crude stocks increased less than expected last week and inventories at the oil hub at Cushing, Oklahoma, declined for the first time since November, suggesting an oil glut may be beginning to ease.
US crude inventories rose 1.9 million barrels last week, compared with analysts' expectations for an increase of 2.3 million barrels.
Crude stocks at the Cushing, Oklahoma, delivery hub fell 514,000 barrels, the government's Energy Information Administration said. The decline at Cushing was the first since November 28, according to EIA data.
"Inventories at Cushing did finally draw down due to strong refinery demand, and that is supportive, since it will allay the fears of many that the operational storage capacity could be reached," said John Kilduff, partner at Again Capital LLC in New York.
Brent crude oil was up 90 cents at $65.54 a barrel. US crude was up $1.20 at $58.26.
The EIA data took attention away from Saudi Arabia, where King Salman altered the kingdom's line of royal succession in a reshuffle that also affected leadership of the national oil company, Saudi Aramco.
King Salman bin Abdulaziz sacked his younger half-brother as crown prince and appointed his nephew, deputy crown prince Mohammed bin Nayef, as the new heir apparent. – Reuters, April 29, 2015.
