Oil rises near 51 dollars despite inventory buildup

April 30, 2009 11:00 am 

NEW YORK, April 30 — Crude oil rose near 51 U.S. dollars a barrel on Wednesday despite a government report showed a larger-than-expected buildup in the crude supplies.

Light, sweet crude for June delivery gained 1.05 dollars to settle at 50.97 dollars a barrel on the New York Mercantile Exchange.

Oil seems to have followed the equity market performance and remained resilient to another jump in the crude inventory. Wall Street rebounded strongly with major indexes gaining more than two percent, as investors found optimism after the Federal Reserve said the pace of the economic contraction is slowing down.

However, oil demand remained weak in the United States, the world's largest oil consumption country. The U.S. Energy Department's Energy Information Administration (EIA) reported on Wednesday that, during the week ended 24, crude stockpiles jumped by 4.1 million barrels, more than doubled analysts' expectations. Current crude inventory reached 374.7 million barrels, highest level since Aug. 31, 1990.

EIA report also showed that average petroleum consumption is down to 18.4 million barrels a day, the lowest since May 28, 1999.

In London, Brent crude for June delivery rose 79 cents to settle at 50.78 dollars a barrel on the ICE Futures Exchange. (PNA/Xinhua) ALM/ebp

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