Brent down; U.S. oil up on stock, rig data in thin Thanksgiving trade 

Brent crude oil futures eased but U.S. crude extended gains on Thursday on light trading due to the Thanksgiving holiday, after a smaller-than-expected inventory build in the United States and a fall in the number of U.S. rigs actively drilling for oil.

Brent lost 11 cents, or 0.2 percent, to $46.06 a barrel as of 0525 GMT (0025 ET).

U.S. crude’s West Texas Intermediate (WTI) futures had risen 11 cents, or 0.3 percent, to $43.15 a barrel.

Brent has been weighed down by concerns of a supply glut as OPEC is determined to keep pumping oil vigorously to defend market share, alarming some of the grouping’s weaker members who fear prices may slump further towards $20.

U.S. crude was supported by the smaller-than-expected build in U.S. inventories, with stocks rising 1 million barrels in the week to Nov. 20 for a ninth consecutive weekly rise. This was below analyst expectations for a 1.2 million barrel rise, according to the U.S. Energy Information Administration. [EIA/S]

“We expect inventories to continue to remain low with strong U.S. refinery utilization which was at 92 percent. U.S. crude production, on the other hand, seems to be continuing its decline,” Daniel Ang at Phillip Futures said.

“This will be ideal for prices in the longer run and if it continues, we should be seeing global oversupply easing.”

Analysts said U.S. crude was also boosted by a fall in oil rigs, a sign that drillers were waiting for higher prices before returning to the well pad. Drilled cut rigs for the 12th week in the last 13, data from services company Baker Hughes showed.

In China, commercial crude oil stocks at the end of October fell 4.4 percent from the previous month in their biggest drop since at least 2010, the official Xinhua News Agency reported on Thursday.

The flat to slightly positive moves in benchmark prices appeared to be in line with sideways trading for the dollar index, said Ric Spooner, chief market analyst at CMC Markets in Sydney, after a few volatile sessions.

The index, which measures the greenback against a basket of currencies, was down around 0.04 percent at 99.758, after touching an eight-month high earlier. The euro also recovered after touching a seven-month low.

Asian stocks advanced on Thursday as the euro remained under pressure on growing bets that the European Central Bank would deliver further stimulus steps. U.S. markets will be closed Thursday and most of Friday afternoon.

Source: Reuters – Brent down; U.S. oil up on stock, rig data in thin Thanksgiving trade

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