Crude oil prices climbed higher on Thursday, rebounding from losses posted in the previous session, after reports that the U.S. Energy Department is unlikely to tap the nation’s Strategic Petroleum Reserve.
Positive sentiment in equities market after U.S. lawmakers reached an agreement to extend the government’s debt limit contributed as well to the buoyancy in the oil market.
West Texas Intermediate Crude oil futures for November ended up by $0.87 or about 1.1% at $78.30 a barrel, recovering from a low of $74.96.
Brent crude futures were up $1.06 or 1.3% at $82.14 a barrel a little while ago.
Oil prices drifted lower earlier in the session, extending losses from the previous session after data showed larger-than-expected rise in U.S. oil stockpiles last week and on indication that the U.S. might tap the Strategic Petroleum Reserve to calm oil and motor fuel prices.
Data released by U.S. Energy Information Administration on Wednesday showed crude stockpiles increased by 2.35 million barrels last week versus expectations for a drop of 418,000 barrels.
Gasoline inventories increased by 3.26 million barrels in the week ended October 1, while distillates stockpiles dropped by 396,000 barrels in the week.