Oil trims gains after a huge increase in US inventories

Follow-up - INA

Oil prices rose, today, Thursday, after the International Energy Agency said that higher natural gas prices may boost demand for oil for electricity generation, but the market pared its gains when US crude stocks rose more than expected.

Brent crude futures rose 42 cents, or 0.5 percent, to $83.6 a barrel, after hitting a session high of $84.50 a barrel.

US West Texas crude contracts also rose 21 cents to $80.65 a barrel.

US crude stocks rose by 6.1 million barrels in the week to Oct. 8, compared with a rise of 702,000 barrels expected by analysts polled by Reuters.

The International Energy Agency said that the demand for crude is expected to rise by half a million barrels per day, with the transformation of the electricity and heavy industries sectors to crude, from more expensive energy sources, and warned that the energy crisis may fuel inflation and slow the recovery of the global economy from the pandemic.