Oil edges up after U.S. stock build, big inflation figure | Reuters

Oil edges up after U.S. stock build, big inflation figure | Reuters

Oil prices rose modestly on Wednesday even after U.S. oil inventories rose and after U.S. inflation figures bolstered the case for another big Federal Reserve interest rate increase.

Brent crude settled up 8 cents at $99.57 a barrel, while U.S. West Texas Intermediate crude gained 46 cents to $96.30 a barrel.

Global benchmark Brent is down sharply since hitting $139 in March, which was close to the all-time high in 2008, as investors have been selling oil of late on worries that aggressive rate hikes to stem inflation will slow economic growth and hit oil demand.

Prices fell by more than 7% on Tuesday in volatile trade to settle below $100 for the first time since April, and are in an oversold condition based on the relative strength indicator, a measure of market sentiment.

"I wouldn’t say this uptrend is over yet," said Thomas Saal, senior vice president at StoneX Financial. "Inventory levels are still pretty low worldwide, and that’s been a big factor in this rally."