Oil rebounds from early drop on modest Cushing stock build
A strong dollar, which hit 11-year highs against other major currencies, and worries about U.S. crude inventories reaching another record peak last week weighed on prices earlier.
The front-month contract in U.S. West Texas Intermediate (WTI) crude jumped \$1, or about 2 percent, to \$50.61 a barrel by 10:58 a.m. EDT (1458 GMT). It traded below \$50 prior to the Cushing build data.
The front-month in benchmark Brent crude, down nearly \$1 earlier in the session, turned positive, gaining 20 cents to \$59.93 a barrel.
Genscape reported a 157,000-barrel hike at the Oklahoma oil hub delivery for oil from Monday through Friday last week, a trader who saw the data said, adding that the "market expected a lot more" in builds.
The data eased some concerns in the market about U.S. crude inventories having hit record highs for a ninth straight week from new builds. The government last reported a total inventory of gain of more than 10 million barrels for U.S. crude for the week ended Feb. 27, taking stocks to beyond 444 million barrels.
Goldman Sachs analysts said in a note to clients that oil prices would reverse recent gains due to rising global inventories. They forecast U.S. crude would drop to around \$40 a barrel.
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