Oil prices rebound despite increasing inventories

U.S. oil price increased Wednesday although government report showed crude stockpile of the country continued to increase last week.

The Energy Information Administration (EIA), the Energy Department's statistical arm, Wednesday released its report covering U.S. crude supplies of the week ending Feb. 27. U.S. crude stockpile increased 10.3 million barrels to 444.4 million, 80.6 million barrels more than a year earlier.

Meanwhile, inventories at Cushing, Oklahoma, the delivery point for the contract, gained 0.5 million barrels to 49.2 million barrels.

U.S. crude production reached 9.324 million barrels a day last week, the highest level since 1983.

Oil prices were boosted by the upbeat data of U.S. The Non- Manufacturing Index registered 56.9 percent in February, 0.2 percentage point higher than the January reading, above market consensus of 56.5, representing continued growth in the non- manufacturing sector, said the Institute for Supply Management in its monthly survey.

The Federal Reserve's Beige Book released Wednesday also supported the crude prices. The report anticipated cuts in capital expenditure for oil and gas producers in certain U.S. districts.

Light, sweet crude for April delivery gained 1.01 U.S. dollars to settle at 51.53 U.S. dollars a barrel on the New York Mercantile Exchange,while Brent crude for April delivery moved down 47 cents to close at 60.55 dollars a barrel. Enditem