Oil pares gains as U.S. fuel stocks draw less than expected - Reuters

Oil pares gains as U.S. fuel stocks draw less than expected - Reuters:

Crude prices pared gains Wednesday, pulling off a 2019 high as U.S. government data showed inventories drew down less than an industry report had suggested on Tuesday.

Brent crude had rallied to its highest this year early in the session, bolstered by an unexpected drop in U.S. crude inventories reported by trade group the American Petroleum Institute late Tuesday.

However, official data from the Energy Information Administration on Wednesday reported a 1.4 million-barrel crude drawdown, about half the API’s reported decline.

“The rally overnight was predicated on a 3 million-barrel per day draw in crude that did not materialize,” said Bob Yawger, director of energy futures at Mizuho in New York. “You’re going to need another catalyst.”

Brent crude futures were up 23 cents at $71.95 by 12:16 p.m. EDT (1616 GMT) having hit an intraday peak of $72.27.