Oil reverses higher before US inventory data

US crude prices reversed higher in American trade after earlier losses in Europe, after initial data showed an unexpected drop in US inventories, while traders now await the official EIA report. 

As of 13:04 GMT, US West Texas Intermediate rose to $61.50 a barrel from the opening of $61.29, with an intraday high at $61.55, and a low at $60.74. 

US crude lost 0.4% yesterday as the dollar index gained ground and concerns mounted over record-high US output. 

The American Petroleum Institute reported a drop of 0.9 million barrels in US crude stocks in the week ending February 16, the second weekly drawdown in three, while analysts expected a 1.8M rise. 

Now traders await the official report from the Energy Information Administration, expected to show a 2.2M rise, the fourth in a row. 

US output rose 20 thousand bpd in the previous reading, the fifth weekly increase in a row, to a record high at 10.28 million barrels.