Oil prices rose about 1% on Thursday after a decline in U.S. stockpiles of refined oil products, but a larger than expected increase in crude oil inventories and a series of weak economic data dampened gains.
Brent crude rose $0.49, or 0.8%, to $59.91 a barrel. US crude oil futures rose 57 cents, or 1.1 percent, to close at $53.93 a barrel.
U.S. gasoline stocks fell 2.6 million barrels and distillate stocks, including diesel and heating oil, fell 3.8 million barrels for the week ending October 11, the EIA said Thursday.
But the impact was offset by a surge in crude inventories. Crude oil inventories increased by 9.3 million barrels, far exceeding the expected increase of 2.8 million barrels.
US crude oil inventories rose as refinery output fell and refinery capacity utilization fell to 83.1%, the lowest level since Hurricane Harvey hit in September 2017.
"On the whole, this is a good report," said Phil Flynn, senior energy analyst at price futures group. "Part of the increase in inventories is due to the fact that refineries are not operating. The decline in capacity utilization of refineries is a concern. "
Earlier data showed that US employment growth and services activity slowed. US retail sales fell for the first time in seven months, with housing starts and manufacturing output falling, adding to concerns about the global economy and energy demand, according to the latest data.
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