Commodities: Crude rises despite higher inventories as US inflation beats forecasts
Crude futures reversed earlier softness to up up late on Wednesday afternoon as the markets welcome a string of US economic news, shrugging off confirmation of higher-than-expected oil stores.
This afternoon, US consumer prices sped past forecasts in January, as did so-called core inflation. Other data revealed stronger than expected total retail sales, while the Empire State Fed's regional manufacturing sector gauge also rose past analysts' estimates.
At 15:58 GMT, Nymex-traded West Texas Intermediate crude was up 0.32% to $53.37 a barrel, while Intercontinental Exchange-listed Brent was ahead 0.38% to $56.18 a barrel.
Both grades of oil had been almost half a percent lower, a little more than an hour earlier.
The US Energy Information Administration reported that oil inventories rose by a greater-than-expected 9.5m barrels last week, against forecasts for a 3.5m barrel rise.
"Crude oil prices have trod water today but continue to struggle at the top end of their recent ranges corralled between the effect of OPEC cuts and increasing US shale production," said Michael Hewson, chief market analyst at CMC Markets UK.
SwissQuote noted that long-term crude had recovered after its sharp decline last year. "However, we consider that further weakness are very likely."
Comex-quoted gold was up 0.02% to $1225.6 an ounce, reversing earlier softness after the issue of US data. Silver shed 0.16% to $17.86 an ounce and copper rose 0.22% to 274.30 an ounce.
"Hawkish Fed speak from Chair Janet Yellen (hinting that a March rate hike could still be on the cards)," said Accendo Markets analysts Mike van Dulken and Henry Croft.
SwissQuote said, in the long-term, the technical structure suggested that there was a growing upside momentum.
"A break of $1392 is necessary to confirm it," it said.
"A major support can be found at $1045."
Three-month industrial metals were mostly lower, led by copper, then zinc and finally tin. However, aluminum made moderate gains.
Among agriculturals, Chicago Board of Trade-priced corn was up 0.53% to 376.25 cents a bushel, and wheat rose 0.16% to 464.25 cents a bushel.
ICE-quoted cocoa rose 2.26% to $1948 a MT, and cotton No.2 lost 0.58% to 77.5 cents a pound. Live cattle was up 0.11% to 114.13 cents a pound.