Oil prices eased for a brief period, after a U.S. government agency reported crude stocks rose more than expected last week, but then reversed course to tack on gains as the American dollar weakened.
The Energy Information Administration reported crude inventories rose by 7.8 million barrels in the last week, compared with analysts' expectations for an increase of 4.8 million barrels, as imports jumped and refiners trimmed throughput.
That total bring stocks to a total of 502.7 million barrels in the week through Jan. 29, marking the first time on record they exceeded 500 million barrels.
Data released by the American Petroleum Institute on Tuesday showed U.S. crude stocks rose by 3.8 million barrels.
The EIA went on to report crude stocks at the Cushing, Oklahoma, delivery hub rose by 747,000 barrels. Moreover, gasoline stocks were also up, rising by 5.9 million barrels, while distillates fell by 777,000 barrels.
Brent for April delivery was up $1.85, or 5.7%, to $34.57 a barrel late morning Wednesday, up from a session low of $32.30 U.S.. Crude futures stateside were up $1.77, or 5.9%, to $31.65 U.S.
