Crude oil storage tanks seen from above in Oklahoma.
Photo: nick oxford/ReutersOil prices edged higher Thursday, preserving a recent recovery after weekly inventory figures showed U.S. crude stockpiles rose less than expected last week, quelling some fears about the impact of the coronavirus.
U.S. crude futures closed up 0.9% at $53.78 a barrel on the New York Mercantile Exchange, posting their highest close since Jan. 24 and trimming some of their recent slide. Prices are still well below a peak hit Jan. 6 amid worries that lower fuel demand in Asia as a result of the fallout from the coronavirus will result in a glut.
Oil pared some of its earlier Thursday advance as stocks fell in midday trading and safe-haven assets such as gold and bonds rallied.
The dollar also extended a recent surge with traders seeking shelter in investments more tied to the U.S. economy, challenging commodities like oil that are denominated in the currency by making them more expensive for overseas buyers.
Brent crude, the global gauge of oil prices, rose 0.3% to $59.31 a barrel on the Intercontinental Exchange.
Analysts have been anticipating deeper production cuts from the Organization of the Petroleum Exporting Countries and its allies, easing some worries about excess supply.
Thursday’s inventory report in the U.S. could also calm some jitters about a glut. Although domestic oil stockpiles rose for the fourth consecutive week during the week ended Feb. 14, the Energy Information Administration’s report showed inventories increased by 415,000 barrels, a much smaller rise than the 3.4-million barrel climb expected by analysts and traders surveyed by The Wall Street Journal.
Additionally, stockpiles of gasoline and distillates, which include heating oil and diesel fuel, declined.
Analysts are looking to coming data points to gauge whether the market will be oversupplied moving forward. Crude inventories were just 2% below the five-year average for this time of year at the end of last week, Thursday’s report showed. Plentiful stockpiles in other Organization for Economic Cooperation and Development nations have also limited oil-price gains in recent months.
Elsewhere in commodities Thursday, natural-gas prices extended a recent stretch of volatility by erasing a morning surge to close down 1.8% at $1.920 a million British thermal units. The decline pared some of the recent rebound in prices of the heating fuel since they hit a multiyear low earlier this month.
Thursday moves came after the natural-gas inventory report showed stockpiles dropped 151 billion cubic feet during the week ended Feb. 14, slightly more than the 147-bcf drop projected by analysts surveyed by The Journal. Cold weather forecasts have helped prices stabilize recently because frigid temperatures tend to lift demand for the heating fuel.
A mild winter and steady supply have dented prices in recent weeks, but as is the case with oil, some analysts said the early year slide in natural gas went too far. On the other hand, stockpiles are 35% above their levels from a year ago and 9.3% above their five-year average for this time of year, potentially limiting the rebound. And many analysts remain concerned that the coronavirus will lower consumption of natural gas.
Corrections & Amplifications
U.S. crude-oil stockpiles rose less than expected during the week ended Feb. 14. An earlier version of this article incorrectly stated that inventories fell less than expected.
Write to Amrith Ramkumar at amrith.ramkumar@wsj.com
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