Jakarta,- World crude oil prices strengthened limited after a US industry group reported crude oil stockpiles rose more than expected last week and as investors curbed expectations of an interest rate cut by the US Federal Reserve.

On Wednesday (14/2/2024) at 14:40 WIB, the price of Brent oil edged up 0.14% to US$82.89 per barrel. While WTI oil edged up 0.14% to US$77.98 per barrel.

"The (price) rally has been truncated by higher-than-expected US inflation figures, which could potentially push back the rate cut cycle," said DBS Bank energy sector team leader Suvro Sarkar.

"In addition, rising inventories are likely to provide a positive surprise this week, and the production shutdown at BP's Whiting refinery is also not helping matters on the demand side."

US crude inventories rose by 8.52 million barrels in the week ended February 9, according to market sources citing American Petroleum Institute figures released late Tuesday.

The increase was much larger than the 2.6 million barrel rise expected by analysts polled by Reuters

"The increase in crude oil is quite bearish. However, this was offset by a large product decline," ING analysts said in a note, adding that the data may reflect refinery shutdowns.

API data showed gasoline inventories fell by 7.23 million barrels and distillate stocks fell by 4.02 million barrels, both much larger declines than analysts had expected.

Also weighing on the market was data on Tuesday that showed US consumer inflation remained high last month. As a result, investors now expect Fed policy makers to wait longer before cutting interest rates, potentially dampening economic growth and oil demand.

With rate cut expectations removed, the dollar rose to its highest level in three months. A stronger dollar typically weighs on oil demand among buyers who pay in other currencies.

ANZ analysts said prices had weakened partly on concerns regarding supply levels from members of the Organization of the Petroleum Exporting Countries (OPEC), despite an overall bullish demand outlook in the group's monthly report on Tuesday.

"OPEC's monthly oil market report ... raised some concerns regarding the group's adherence to recent production cuts. Only Kuwait and Algeria are implementing the cuts, with Iraqi production well above the agreed quota," ANZ analysts said in a client note.

Sources : cnbcindonesia.com- Feb 14.24