This was below analyst expectations for a 1.2 million barrel rise, according to the U.S. Energy Information Administration.
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With geopolitical factors ebbing, macroeconomic concerns put downward pressure on crude oil prices in early Wednesday trading.
“Thereafter, the summer of 2016 presents down-risk for oil prices as OPEC pursues its current policy, US production stabilizes and Iran delivers more barrels to the market”, they added, referring to the Organization of the Petroleum Exporting Countries.
But if OPEC fails to stick to this and announces any changes next Friday, this could cause a so-called “short squeeze” on the market.
A gain in the dollar, which rose to an eight month high against a basket of currencies .DXY , also weighed on prices as oil, priced in the USA unit, became less affordable to holders of other currencies.
Brent LCOc1 was down 94 cents at $45.18 a barrel at 1241 GMT, having touched a low of $45.11.
SINGAPORE, Nov 19 Oil prices edged up on Thursday but still struggled to break away from the $40-per-barrel mark as oversupply and high inventories ensured an ongoing glut.
The jury’s still out on whether last year’s oil slump was a deliberate Saudi move, aimed at killing USA shale production.
“The well supplied crude market, record high inventories in OECD and lack of material threat to oil facilities in the Middle East from the military escalation against IS in Syria are going to prevent geopolitical premiums building in oil prices”, BMI said in a note.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in January CLF6, -1.56% traded at $43.03 a barrel, up $0.16 in the Globex electronic session.
A Reuters report that euro zone central bank officials are considering whether to stagger charges on banks hoarding cash or to buy more debt ahead of the next European Central Bank meeting pushed the euro lower.
US stocks ended slightly higher as energy shares rose with oil prices and the S&P energy index ended up 2.2 percent. This makes dollar-denominated metals more expensive for buyers.
Gasoline futures rose 4.6% to $1.374 a gallon.
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“We expect inventories to continue to remain low with strong USA refinery utilization which was at 92 percent”.
