Oil reduces gains after unexpected surge in US crude stocks

Oil prices gained ground on Wednesday but reduced the gains after US inventory data, which showed an unexpected buildup last week.

The Energy Information Administration reported a buildup of 3.9 million barrels in US crude stocks last week to a total of 416.9 million barrels, while analysts expected a drop of 1.5 million barrels. 

Gasoline stocks rose 1.1 million barrels to 221.2 million barrels, while distillate stocks fell by 1.3 million barrels to 121.6 million barrels. 

Israel said that Iran launched over 180 ballistic missiles at its territory, with Iran’s Revolutionary Forces saying the attack is a response to Israel’s assassination of Ismael Heniyeh and Hassan Nasrallah.

There were no reports of injuries in Israel, and it comes after a similar Iranian attack in April that didn’t leave a lasting damage or impact on the financial markets.

On trading, Brent December futures rose 0.45%, or 34 cents to $73.90 a barrel.

US crude futures due in November rose 0.4%, or 27 cents to $70.10 a barrel.