Crude-oil futures were in positive territory in Asian trade on Friday after U.S. inventory data showed an overall decline in oil and oil product stocks.
On the New York Mercantile Exchange light, sweet crude futures for delivery in March traded at $97.58 a barrel at 0624 GMT--up $0.26 in the Globex electronic session. March Brent crude on London's ICE Futures exchange rose $0.17 to $107.75 a barrel.
U.S. crude inventories in the week ended Jan. 17 increased by 1 million barrels to 351.2 million barrels--the first weekly increase since November--compared with an estimated increase of 1.2 million barrels, Energy Information Administration data showed.
Gasoline stocks rose by 2.1 million barrels to 235.3 million barrels. But, distillate stocks including heating oil and diesel fuel fell by 3.2 million barrels to 120.7 million barrels--indicating stronger fuel demand in January so far as a result of extreme cold.
Nymex crude had gained 59 cents overnight--settling higher for six of the past seven sessions--helping narrow the Brent-WTI spread.
"The price response was consistent with an overall decline in hydrocarbon inventories with prices possibly boosted by dollar weakness," BNP Paribas said in a note.
While demand for crude at refineries fell last week overall demand remains high with refineries operating at 86.5% capacity and runs are still around 1 million barrels a day greater than a year ago, it said.
Meanwhile, in South Sudan government and rebel forces signed a cease-fire on Thursday--agreeing to freeze troops movement and military operations to help end more than a month of fighting that has threatened oil production.
At the World Economic Forum in Davos Iranian President Hasan Rouhani said his government seeks "constructive engagement" with the world to promote economic development and coexistence.
The cease-fire in South Sudan and Iran's Davos statement "may have also reduced geopolitical tensions to some small degree although we wouldn't assume that either effort necessarily results in additional oil supply any time soon," Citi Futures energy markets strategist Tim Evans said in a note.
Nymex reformulated gasoline blendstock for February--the benchmark gasoline contract--rose 16 points to $2.6634 a gallon while February heating oil traded at $3.0835--70 points higher.
ICE gasoil for February changed hands at $921.00 a metric ton--down $1.50 from Thursday's settlement.
