LONDON, May 4: IPE Brent crude oil futures pared gains, but stayed strong in late trade on Wednesday after shrugging off US inventory data that showed crude oil stocks had reached their highest level for nearly six years. June Brent was 45 cents higher at $50.97 by 1830 GMT on front-month volume of 54,336 lots. Following the release of US data on Wednesday, it had hit a session low of $49.66. It then rebounded to a session high of $51.49.
NYMEX light crude gained 65 cents to $50.15.
Traders said the US market led the recovery from session lows as short-covering kicked in and some analysts said the fact the crude build was concentrated on the West Coast meant it was not as bearish as initially thought.
The latest batch of US inventory data showed US commercial crude oil stocks rose by 2.6 million barrels in the week to April 29.
The build, which was the 11th in 12 weeks, exceeded expectations for a rise of one million barrels among analysts polled by Reuters.
Stocks totalled 327 million barrels, the highest level since July 1999, the US Energy Information Administration said.
Gasoline stocks rose by 2.2 million barrels, also above analyst expectations for a rise of 700,000 barrels. Gasoline is the focus of oil products markets ahead of the US summer driving season, which starts in late May.
Distillate stocks, including heating oil, fell 300,000 barrels, compared to analyst expectations for a rise of 700,000 barrels.
Products also rebounded, with heating oil leading the way, traders said. US heating oil rose 1.60 cents a gallon to $1.4520, while US gasoline rose 0.76 cents to $1.4670 a gallon.—Reuters
