Oil prices rose on Wednesday after U.S. inventory data showed a decline in fuel stockpiles and OPEC ministers pledged to push ahead with output cuts agreed upon last month.
U.S. crude
Inventory data released by the U.S. Energy Information Administration on Wednesday showed inventories of distillates and gasoline fell unexpectedly, while crude stocks rose less than anticipated.
Distillate stocks fell by 2.7 million barrels, much more than the 500,000-barrel draw expected. Gasoline inventories, which had been expected to be unchanged, declined by 600,000 barrels. Crude stocks rose 400,000 barrels, below the forecast for a 700,000-barrel build.
"The bullish tone is diluted by the fact that, in the distillate breakdown, heating oil stocks actually rose by 300,000 (barrels)," BNP Paribas said in a note.
High inventory levels have worried members of the Organization of Petroleum Exporting Countries. On Wednesday, Gulf members of the producer group, who met in Abu Dhabi, said they were fully committed to the cut of 1.2 million barrels per day agreed in Doha last month.
"All of OPEC is committed (to the cuts)," United Arab Emirates Oil Minister Mohammed bin Dhaen al-Hamli said.
Ministers, including Saudi Oil Minister Ali al-Naimi, have said the market remains oversupplied and that further cuts could be agreed on at OPEC's next meeting on December 14.
High inventory levels, combined with skepticism about OPEC's commitment to production cuts, have helped to pull prices down by around 25 percent from the record high of $78.40 for U.S. crude hit in July.
But Goldman Sachs said inventories were progressively being eroded by stronger-than-expected demand.
"We continue to believe that the recent, lower oil price levels will prove short-lived, particularly as the lower prices have contributed to exceptionally strong demand growth in the U.S.," the investment bank wrote in a report.
It maintained its price forecast of $75.50 for U.S. crude next year.
