EIA: US crude stockpiles up less than expected

Crude oil prices varied during the session Wednesday after the US Energy Information Administration said that oil inventories were up 1.4 million barrels last week to 343 million barrels, not as much as the 2.1 million barrel gain which had been expected.

Prices rose and fell and by afternoon trade in New York April contracts for West Texas Intermediate crude were up 8 cents to $81.57 per barrel, while at last report Brent crude had added 1 cent to $79.92 per barrel on the ICE Futures Europe exchange in London.

Meanwhile, the EIA also reported that gasoline inventories fell 2.9 million barrels last week and distillates in storage dropped 2.2 million barrels in the same time span, both bigger declines than had been anticipated.

Last week’s inventory movements came as US demand continued to be weak, although the Organization of Petroleum Exporting Countries raised their forecast for oil demand, saying that thirst for oil will grow by 900,000 barrels per day this year.

The limited gains in prices were at least partly due to investor concern over increasing support for rules that would inhibit proprietary trading by banks, which would rein in risky deals by banks.