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REFILE-Oil rises on smaller-than-expected build in U.S. crude stocks

Published 14/09/2016, 05:03 pm
© Reuters.  REFILE-Oil rises on smaller-than-expected build in U.S. crude stocks
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(Corrects to say IEA not EIA in quote in paragraph 6 after company clarification.)

* Crude prices rise after falling as much as 3 percent on Tuesday

* API reports 1.4 mln-barrel U.S. crude build for last week

* Libyan crude exports expected to resume

By Mark Tay

SINGAPORE, Sept 14 (Reuters) - Oil prices rebounded in Asian trade on Wednesday after falling by as much as 3 percent in the previous session, as data from an industry group showed a smaller-than-expected build in U.S. crude stocks.

The American Petroleum Institute (API) reported a crude build of 1.4 million barrels for the week ended Sept. 9, smaller than the 3.8 million-barrel rise expected by analysts. The U.S. government will issue official inventory data on Wednesday.

Brent crude futures LCOc1 were trading at $47.34 per barrel at 0103 GMT, up 24 cents, or 0.5 percent, from the last settlement.

U.S. West Texas Intermediate futures CLc1 were up 29 cents, or 0.7 percent, at $45.19 a barrel.

Crude prices tumbled on Tuesday after the International Energy Agency (IEA) said slowing oil demand growth amid growing inventories and supplies could signal that the market will be oversupplied at least through the first half of 2017. came under heavy selling after the IEA released its monthly report showing it expected the surplus in the market to persist well into 2017," Australian bank ANZ said in a note. "Weaker oil prices are likely to weigh on the sector, with investor appetite remaining weak."

Gains in crude prices could also be capped by rising crude exports from Libya after the country's National Oil Corporation (NOC) said on Tuesday it would immediately start working to resume crude exports from ports seized in recent days by forces loyal to eastern commander Khalifa Haftar. production could be raised to 600,000 barrels per day (bpd) from about 290,000 bpd within a month, further adding to the global crude supply glut.

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