Crude inventories rose by 1.4 million barrels in the week to September 15 to 470.3 million, compared with expectations for an increase of 3.5 million barrels. It rebounded to 9.35 million barrels per day in the prior week, but was still below the 9.53 million bpd rate before Harvey hit. Central time, up about 89 cents, or 1.8 percent.
Gasoline inventories are expected to decline by 800,000 barrels and distillate supplies are expected to show a draw of about 1 million barrels. Some U.S. refiners are delaying maintenance to take advantage of strong margins.
Some cartel members-including less compliant nations like Iraq-have indicated in recent weeks that they would be open to extending the production cuts after the deal expires early next year, but analysts and investors don't expect a final decision until OPEC's next official gathering in November.
Oil has risen more than 5 per cent in NY since Harvey slammed into the Texas coast on August 25, swamping the heart of the U.S. refining industry and disrupting everything from tanker arrivals to gasoline production.
Oil prices rose almost 2 percent on Wednesday, despite a rise in US crude inventories, with the market heading for its largest third-quarter gain in 13 years after the Iraqi oil minister said OPEC and its partners were considering extending or deepening output cuts.
Market players were looking ahead to a meeting Friday between OPEC and other producers regarding a possible extension by more than three months of oil production cuts that expire in March 2018.
Oil prices also gained support from the latest data released by industry group the American Petroleum Institute that stated a rise of 1.4 million barrels in USA crude stocks to 470.3 million against a higher expectation of 3.5 million barrels improvement. Total volume traded was about 2% below the 100-day average.
November Brent crude LCOX7, +1.07% the global benchmark, rose 49 cents, or 0.9%, to$55.63 a barrel on the ICE Futures Europe exchange.
Gasoline inventories fell by 2.1 million barrels and distillate fuels, which include diesel and heating oil, dropped by 5.7 million barrels.
Global crude oil prices slipped slightly Monday but stayed close to multimonth highs as traders braced for a potential stockpile build, expected later this week.