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UPDATE 8-Oil up as smaller U.S. crude build offsets end of Kuwait strike

Published 21/04/2016, 01:28 am
© Reuters.  UPDATE 8-Oil up as smaller U.S. crude build offsets end of Kuwait strike
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* Brent, U.S. crude off lows on smaller U.S. crude build last week

* Prices initially slumped as Kuwait ended 3-day oil strike (New throughout, updating market acivity and comments after EIA data)

By Barani Krishnan

NEW YORK, April 20 (Reuters) - Oil prices rebounded on Wednesday after a smaller-than-expected U.S. crude build offset glut worries stirred by the end of a Kuwaiti oil workers strike.

The U.S. government's Energy Information Administration said crude stockpiles rose 2.1 million barrels last week. EIA/S

Analysts polled by Reuters had expected a 2.4 million-barrel build for the period, while industry group American Petroleum Institute had called for a 3.1 million-barrel rise. API/S

"It's overall mixed and slightly supportive, with total stocks of refined products and crude oil combined declining slightly," Dominick Chirichella, senior partner at the Energy Management Institute in New York said, commenting on the EIA data.

Brent's front-month contract LCOc1 was up 35 cents at $44.38 a barrel by 11:23 a.m. EDT (1523 GMT). It had fallen to a session low of $42.81 earlier.

U.S. crude's front-month contract, May CLc1 , due to expire at Wednesday's settlement, was up 18 cents at $41.26 a barrel. Its session low was $39.85.

Oil prices initially tumbled as the Kuwaiti oil and gas industry called off a three-day strike and reports later said six supertankers had lined up at Kuwait's crude export terminal to load oil. Kuwait has also raised its oil output to 1.6 million barrels per day (bpd) from 1.1 million on Sunday. CHART: Brent oil may drop to $42.34

http://graphics.thomsonreuters.com/US/2/PVB_20162004091036.png CHART: U.S. oil neutral in $40.03-$41.27 range

http://graphics.thomsonreuters.com/US/2/PVB_20162004090028.png

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