Oil inched up above $72 this morning after sliding 3 per cent from its highest since last October a day ago, hit by industry figures showing a hefty rise in US crude stocks and overshadowing upbeat economic data.
Investors viewed prices touching 10-month highs near $75 yesterday, capping oil's jump of 65 per cent this year, as a good reason to take profits, but a rebound in Asian shares lifted sentiment.
US crude for October gained 16 cents to $72.21 a barrel by 7.27am, after falling $2.32 yesterday, for its sharpest percentage drop since August 14th.
Brent crude rose 12 cents to $71.94 a barrel after losing $2.44 the previous day.
American Petroleum Institute (API) data showed an unexpected 4.3 million-barrel build in U.S. crude stocks last week, confounding analysts' expectations for a 1.1-million-barrel fall, and coming after the 8.4-million-barrel drop the week before.
Petrol stocks fell 1.8 million barrels, the API said, more than the 1 million-barrel drop predicted in the Reuters poll, while distillates declined 146,000 barrels, versus forecasts for a 300,000-barrel rise.
As crude oil trimmed its losses and volatile Chinese shares rebounded, the yen and US dollar surrendered early gains, helping higher-yielding and commodity-linked currencies, such as the Australian and Canadian dollar, back from the day's lows.
Oil had surged in earlier US trade after reports showed increased consumer confidence and higher home prices in the world's top energy user, adding to a slew of encouraging economic indicators, and Wall Street's jump to the highest levels since October's plunge.
Reuters