Crude prices rise despite U.S. inventory buildup
Crude prices rose on Wednesday, recovering to the losses made yesterday, despite the EIA report showing a larger buildup in U.S. inventories than expected last week.
U.S. crude futures last traded at $52.10 a barrel, up from the opening of $50.75, with an intraday high at $52.32, and a low at $50.74.
The Energy Information Administration released its report on U.S. crude stocks, showing a rise of 4.1 million barrels in the week ending January 6, above expectations of a 0.9M rise, and compared to the previous reading's 7.1M drawdown.
Crude's rise today came after Saudi Arabia cut its oil exports to Asia according to the deal with OPEC to cut production in cooperation with other producers like Russia.
U.S. inventory buildup comes as U.S. shale production increases, which would've forced prices down today, but investor's push to buy offset the negative effect after prices hit several lows yesterday.