Oil prices rise as inventories rise again

Reuters- Oil prices went up in early Asian trade after falling to their lowest level this year as U.S. production and gasoline inventories went up as concerns grew that economic slowdowns would weaken fuel demand.

The price of crude oil went up 62 cents or 0.8% at $77.79 per barrel by 0130 GMT, while the U.S. West Texas Intermediate WTI crude futures gained 69 cents or 1% to $72.70 per barrel.

Brent had settled below the previous closing low of the year, on Wednesday, while U.S. West Texas Intermediate crude had fallen to a new yearly low.

U.S. crude production rose to 12.2 million barrels per day last week, its highest level since August, the Energy Information Administration said on Wednesday.

While U.S. crude stocks fell last week, gasoline and distillate inventories surged, adding to concerns about easing demand. In the week, gasoline stocks grew by 5.3 million barrels to 219.1 million barrels, and distillate stockpiles, including diesel and heating oil, swelled by 6.2 million barrels, the EIA said.

Data showing Japan's economy shrank less than originally estimated in the third quarter helped lift oil prices. Loosening COVID 19 restrictions in China, among the biggest crude oil consumers in the world, has aided in steadying oil prices.

After the G 7 and European Union rolled out new restrictions on December 5 on Russian oil exports, Western officials are in talks with Turkish counterparts to resolve oil tanker queues off Turkey, a British Treasury official said.

At least 20 oil tankers are facing delays to cross from Russia's Black Sea ports to the Mediterranean as operators try to adhere to Turkish rules.