Oil Trims Gains On US Fuel Stockpiles Jump

US WTI crude oil futures pared gains on Wednesday after a U.S. official said the country was continuing to consider tools to manage energy prices, and as government data pointed to weaker gasoline demand.

WTI U.S. crude futures were trading $1.3, or 2.02%, higher at $67.51 a barrel at 12:04 p.m. ET (1619 GMT), after paring some gains immediately after the weekly government stock data. They were up as much as 4% earlier in the session.

Oil prices were also impacted by a new coronavirus variant triggering fresh travel restrictions that could dampen oil demand and after an OPEC+ document showed the group forecasting a bigger oil surplus in the new year than previously thought. read more

Global benchmark Brent crude was up $1.5, or 2.3%, at $71.75 a barrel. U.S. Deputy Energy Secretary said the Biden administration could adjust the timing of its planned release of strategic crude oil stockpiles if global energy prices drop substantially.

U.S. gasoline stocks (USOILG=ECI) rose 4 million barrels last week to 215.4 million barrels, government data showed, compared with analysts’ expectations in a Reuters poll for 29,000-barrel rise. Distillate stockpiles (USOILD=ECI) increased 2.2 million barrels to 123.9 million barrels, versus expectations for a 462,000-barrel build.

Crude inventories (USOILC=ECI) fell 910,000 barrels in the week, data showed, compared with forecasts for a 1.2 million-barrel drop.

The Organization of the Petroleum Exporting Countries concluded its meeting on Wednesday without a decision on whether to release more oil into the market.

The OPEC+ alliance, which includes Russia and other producers, will likely take a policy decision on Thursday. Reports and analysts suggested that expectations were growing that the group will take a pause due to the threat from a new virus variant.