Oil reserves rise against expectations

The Energy Information Administration said in its weekly report that Crude Oil Inventories rose by 0.313 million barrels as of the week ending June 14. This is above the average range for this time of the year. Gasoline inventories rose by 183 000 barrels last week, also above the average. Distillate fuel inventories dropped by 500 000 barrels, thus remaining below the average range. Refineries operated at 89.3% of their capacity.

Final figures mismatched analysts expectations and differed from the American Petroleum Institutes estimates. According to a Bloomberg survey crude reserves should have fallen by 500 000 barrels last week amid increased demand during the driving season. Gasoline stockpiles were expected to have increased by 500 000 barrels and distillate-fuel inventories were supposed to jump by 925 000 barrels. Refinery activity was expected at 88% of total capacity, 0.5% higher than the preceding week.

The American Petroleum Institutes separate report showed on Tuesday that that oil inventories shrank by 4.3 million barrels for the week ending June 14, compared to a 1 million decrease forecast. Gasoline stockpiles rose by 918 000 barrels and distillate-fuel reserves fell by 607 000 barrels.

However EIAs report, which is referred to as more reliable, weighed on prices and thus erased WTIs daily gains, after it traded near a nine-month high earlier in the day.

On the New York Mercantile Exchange, WTI crude for August delivery erased earlier daily gains and traded at $98.64 a barrel at 14:38 GMT, down 0.03% on the day. Light, sweet crude hit a low during the early U.S. session and ranged between days high and low at $99.21 and $98.39 per barrel respectively.

Meanwhile, Brent oil August futures remained on the green side, trading 0.20% higher on the day at 14:41 GMT. The European benchmark stood at $106.24 per barrel, moving between day high at $106.58 and low of $105.95 per barrel.