Crude price rally on US inventories report

Oil rallied today as dealers digested the latest snapshot of commercial crude reserves in top global consuming nation the United States.
Around 1715 GMT, US benchmark West Texas Intermediate (WTI) for delivery in April jumped USD 1.49 to USD 37.99 a barrel.
Brent North Sea crude for May delivery won USD 1.26 to USD 40.91 a barrel compared with yesterday's close.
The market had already risen in earlier deals despite festering concerns over the global economy, in particular weak Chinese growth.
The US government's Department of Energy (DoE) reported today that commercial crude stockpiles gained almost 3.9 million barrels in the week ending March 4.

That beat market expectations for a build of 3.5 million barrels, according to analysts polled by Bloomberg News. However, it was far less than the 10.4-million-barrel jump posted the previous week.

"The price of oil added to daily gains after weekly US oil inventories rose by 3.88 million, higher than estimates -- but well below the shockingly large build seen last week," said CMC Markets analyst Jasper Lawler.
The DoE added that gasoline or petrol inventories sank 4.5 million barrels, which easily outstripped forecasts for a drop of 1.5 million.
Distillates, including diesel and heating fuel, declined 1.1 million barrels. Analysts had pencilled in a 900,000-barrel decline.

The market had skidded lower Tuesday on weak Chinese trade data and scepticism about the prospects of major petroleum producers agreeing to limit output.
China's exports tanked by more than a quarter in February -- the sharpest fall since May 2009 during the financial crisis -- fuelling fears that the world's second biggest economy and top energy consumer was in for a so-called hard landing.
"It's a signal of the slowing down of the Chinese economy, the largest consumer of energy in the world," said Margaret Yang, market analyst at CMC Markets Singapore.
China is the world's biggest trader in goods and a key driver for world economic growth, but its companies have been battered by weak demand from major markets.

In turn, its slowing expansion has helped send commodities prices plunging in recent times.