Crude stockpiles rose 2.1 million barrels last week, which was more than expected," said Ong Yi Ling, investment analyst for Phillip Futures in Singapore.
The US Department of Energy said in its weekly report Wednesday crude stocks rose by 2.1 million barrels last week, but that gasoline (petrol) stockpiles dived by 5.3 million barrels. But traders are still monitoring the wave of unrest in the oil-rich Middle East and North Africa region.
"The fear factor in the Middle East is the main factor driving crude oil prices and I would look to the events there. The tensions in the Middle East will continue to underpin crude oil prices," Ong added. Anti-government protests continued in Libya, Yemen, Bahrain and Syria. Libyan forces hammered rebel cities on Wednesday with tank fire forcing civilians to flee as a top British officer said leader Moamer Kadhafi's air force had been destroyed.
The conflict in Libya continued to press the markets, after forcing the shutdown of more than three quarters of the country's oil production. Oil-rich Libya was producing 1.69 million barrels a day before the unrest, according to the International Energy Agency. It is now producing 400,000 barrels a day.