Khaberni - Oil prices registered slight increases on Wednesday, continuing the gains achieved in the previous session, supported by strong economic growth in the United States and concerns about supply disruptions from Venezuela and Russia.
Brent crude futures rose four cents or 0.06% to $62.42 per barrel by 01:17 GMT, while West Texas Intermediate crude increased by three cents or 0.05% to $58.41.
Oil rose by more than 2% on Monday, with Brent crude recording its biggest daily gains in two months, while West Texas Intermediate had its largest increase since November 14. Oil prices increased by more than 0.5% on Tuesday.
The U.S. Commerce Department's Bureau of Economic Analysis said in its preliminary estimates for the third quarter GDP on Tuesday that the U.S. economy grew at a faster pace than expected, driven by strong consumer spending.
Tony Sycamore, an analyst at IG, noted in a memo "The gains achieved overnight were supported by strong third quarter GDP data released Tuesday night against a backdrop of escalating geopolitical tensions".
Disruptions to Venezuela's exports were the most significant factor in boosting market sentiment, reported Haitong Futures, while prices were also supported by ongoing attacks between Russia and Ukraine on each other’s energy infrastructure.
Analysts said that oil inventory data from the world's largest consuming country received little attention from the market due to other more impactful factors.
Sources in the market citing the American Petroleum Institute said on Tuesday that U.S. crude and gasoline inventories rose last week.
Sources, who requested anonymity, mentioned that crude inventories increased by 2.39 million barrels in the week ended December 19.
Additionally, the sources added that gasoline stocks rose by 1.09 million barrels while distillate stockpiles increased by 685 thousand barrels.
The U.S. Energy Information Administration is scheduled to release its data on Monday, later than usual due to holidays.
