“Sentiment on the oil market already appears to be so negative that additional ‘negative news’ is needed to justify any further price fall,” analysts at Commerzbank wrote in a note to clients. Brent crude, the global oil benchmark, rose 1% to $48.37 a barrel on London’s ICE Futures exchange. On the New York Mercantile Exchange, West Texas Intermediate futures were trading up 1% at $45.64 a barrel. While U.S. oil inventories are 26% higher than last year, the EIA also reported declines in stocks of gasoline and distillates, which include diesel, in a sign of healthy demand for oil products. U.S. oil production stayed stable from the previous week, EIA data showed, at about 9.1 million barrels a day, after peaking in April at 9.6 million barrels a day.
Oil prices gained on Friday as global equity markets extended their slide. Meanwhile, data from the Energy Information Administration (EIA) showed U.S. crude stockpiles jumped more than expected last week.
“The enhanced volatility in the market in general is spilling over into energy, as investors are reducing risk,” said Rob Thummel, managing director at Tortoise, which manages $16 billion in energy-related assets. “When you have volatile equity markets, the risk-off trade is happening and you’ve got a third consecutive build, that’s generally not a good recipe for crude oil prices.”
Meanwhile, the EIA reported on Thursday that U.S. crude inventories rose by 6 million barrels last week, compared with the general consensus of a 2.6 million-barrel increase.
Just a week earlier, the EIA reported a near-8-million barrel build in U.S. crude stocks, which was quadruple expectations.
more at source: https://www.investing.com/news/commodities-news/oil-prices-gain-as-equity-markets-extend-slide-us-crude-inventories-rose-1641610