"Due to Japan and Libya, the DoE report has been ignored as a trading input over the last few weeks as market participants were focusing on the macro-developments," said analyst Olivier Jakob at consultancy PetroMatrix.
"Now that those events are not anymore attracting any trading volume we would expect that traders will start watching the DOE report again." Traders are also keenly following the level of gasoline reserves ahead of the summer driving season in the United States starting in May, when many Americans hit the roads on holiday, pushing up demand. The United States is also the world's biggest consumer of oil. In Libya on Wednesday, loyalist forces overran the oil town of Ras Lanuf, scattering outgunned rebels as world powers debated arming the rag-tag band of fighters seeking to oust Moamer Qadhafi. AFP reporters quoting rebel fighters said Qadhafi's troops swept through Ras Lanuf, strategic for its oil refinery, blazing away with tanks and heavy artillery fire soon after dawn. Panicked rebels fled in their hundreds through Uqayla, 20 kilometres (12 miles) east of Ras Lanuf, calling for coalition air strikes on Qadhafi's forces. Libya produced 1.69 million barrels a day before the unrest, according to the International Energy Agency. However, output has since fallen sharply. On Tuesday, the oil market had risen, ending three days of losses, as traders reacted to news that Qadhafi loyalists were winning back ground.
"Oil prices rose yesterday as forces loyal to Qadhafi moved eastwards to reoccupy coastal towns in the strategically important oil-exporting region," added Westhouse analyst Trish Hart. Across in Japan, meanwhile, crews continued their struggle to avoid a meltdown at the crippled Fukushima Daiichi plant that was rocked by a devastating earthquake and tsunami on March 11.