Oil Prices Turn Higher As Report On Supplies And Output Sinks In

By Myra P. SaefongMarketWatch Pulse

Oil futures reversed course Wednesday to trade higher after the latest weekly data from the U.S. government. The report showed a hefty 10.4 million-barrel increase in crude supplies but also revealed that domestic output edged lower. Total U.S. crude output fell by 25,000 barrels to stand at 9.077 million barrels a day, the Energy Information Administration said. April West Texas Intermediate oil was up 48 cents, or 1.3%, to $34.88 a barrel on the New York Mercantile Exchange. It was trading around $34.30 ahead of the supply data and dropped to as low as $33.63 after them, before climbing back up again. Oil's price move "looks like a classic case of sell-the-rumour, buy-the-news type of a reaction," said Fawad Razaqzada, technical analyst at Forex.com and City Index. He said a supply build of this magnitude was already reported by the API last night and we are in a 'risk on' environment right now.

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