WASHINGTON (dpa-AFX) - Despite coming off the day's highs, oil futures settled modestly up on Wednesday as traders seemingly bet on a likely drop in supplies due the ongoing tensions in the Middle East.
Data showing an unexpected increase in U.S. crude inventories last week weighed on oil prices. OPEC's plan to increase oil production in December, and concerns about the outlook for oil demand from China weighed as well on the commodity's prices.
West Texas Intermediate crude oil futures for November ended up $0.27 or about 0.39% at $70.10 a barrel, after rising to around $72.50 a barrel earlier in the day.
Brent crude futures ended higher by $0.34 or 0.46% at $73.90 a barrel.
Israel's ambassador to the United Nations, Danny Danon, vowed late Tuesday that Israel will exact a 'painful' response against Iran. Danon's threat cames after Iran launched around 180 ballistic missiles at Israel in retaliation for the assassination of top Hamas and Hezbollah leaders.
Data from the Energy Information Administration (EIA) showed crude oil inventories jumped by 3.9 million barrels in the week ended September 27th, after slumping by 4.5 million barrels in the previous week.
Nonetheless, at 416.9 million barrels, crude oil inventories remain about 4% below the five-year average for this time of year, the EIA said.
The EIA said gasoline inventories also increased by 1.1 million barrels last week but are about 1% below the five year average for this time of year.
Meanwhile, distillate fuel inventories, which include heating oil and diesel, fell by 1.3 million barrels last week and are about 8% below the five-year average for this time of year.
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