NEW YORK, Sept 13 (Reuters) - Oil prices rose on Wednesday, hitting a 10-month high, as a surprise build in U.S. crude inventories did not dampen expectations of tight crude supply for the rest of the year.
International benchmark Brent futures rose 39 cents to $92.45 a barrel by 10:49 a.m. EDT (1449 GMT). Its session high of $92.84 a barrel was the highest since November.
U.S. West Texas Intermediate (WTI) crude gained 45 cents to $89.29. Its session high of $89.64 a barrel was also the highest since November.
Front-month Brent futures contracts traded as high as $4.90 a barrel above those for delivery six months further out , the widest spread since November, indicating tightening supply.
Prices gained despite government data that showed U.S. crude stocks, gasoline and distillate inventories rose last week.
U.S. crude inventories (USOILC=ECI) rose by 4 million barrels in the last week to 420.6 million barrels, confounding analysts' expectations in a Reuters poll for a 1.9 million-barrel drop.
"The big picture is the extended voluntary production cuts by Saudi Arabia and Russia," said Andrew Lipow, president of Lipow Oil Associates in Houston. Those two countries have extended production cuts of 1.3 million barrels per day (bpd) of crude to year end, which will lock in a substantial market deficit through the fourth quarter, the International Energy Agency (IEA) said on Wednesday.
The continuing supply cuts could lift Brent futures above the $100 a barrel threshold before the end of the year, Bank of America analysts said.
U.S. consumer prices rose in August by their most in more than a year, the Bureau of Labor Statistics said, driven by a 10.6% increase in retail gasoline prices.
Excluding volatile food and energy components, the consumer price index rose by 0.3%.
Forecasters expect the European Central Bank to raise interest rates at its meeting on Thursday.
The IEA's fourth-quarter demand growth forecast, meanwhile, was revised down by 600,000 bpd in what Investec analyst Callum Macpherson said was a significant adjustment.
"The deficit is now broadly equal to the Saudi additional voluntary cut," he said.
The Organization of the Petroleum Exporting Countries (OPEC) on Tuesday stuck to its forecasts for robust growth in global oil demand in 2023 and 2024.
Four oil ports shut in by powerful storms in Libya reopened on Wednesday.
Reporting by Stephanie Kelly, Robert Harvey, Yuka Obayashi and Muyu Xu; Editing by David Goodman and David Gregorio
Our Standards: The Thomson Reuters Trust Principles.
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Oil rises as supply cuts offset surprise U.S. crude inventory build - Reuters
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