WTI ended up 0.2% at 45.52 dollars and Brent ended up 0.04% at 48.86 dollars.

Oil prices gave up their gains on Wednesday after a massive increase in U.S. crude inventories and despite hope for better days for demand with COVID-19 vaccines.

In New York, the American barrel of WTI for the month of January fell 8 cents or 0.2% to 45.52 dollars.

The barrel of North Sea Brent for delivery in February picked up 0.04% or 2 cents in London to 48.86 dollars.

“The surge in oil and gas inventories in the United States has simply erased the gains in the oil market,” explained CMC Markets analyst David Madden.

Oriented on the rise at the beginning of the American session, black gold prices fell after the publication of the weekly report of the American Energy Information Agency (EIA) before regaining some strength.

According to EIA figures, commercial crude stocks in the country rose by more than 15 million barrels to 503.2 million barrels (MB) as of December 4.

Reserves of gasoline increased by 4.2 MB and those of distilled products (heating gas and fuel oil) by 5.2 MB, figures that confirm the low demand for black gold in the United States.

The United States experienced a similar increase in crude inventories in April, but such a weekly increase is extremely rare.

The day before, the American Petroleum Institute (API), the federation of professionals in the petroleum sector, published its estimate and reported an increase of 1.1 million barrels.

Analysts surveyed by Bloomberg expected a slight fall earlier in the day, fuelling a certain optimism about the market fuelled by the first vaccination campaigns, particularly in the United Kingdom, synonymous with the end of travel restrictions and, as a consequence, a recovery in demand for crude oil in the medium term.

“Despite disappointing U.S. inventory numbers, demand data, and the gloomy short-term outlook, we are optimistic about the oil market in 2021,” commented Bart Melek of TD Securities, who predicts WTI to close to $50 once the global economy stabilizes.

“The Biden administration and the world's other major economies will seek to adopt a major stimulus package that is supposed to restart demand in the United States and elsewhere,” he continued.

Moreover, explains Mr. Melek, the gradual return of barrels from the main producing countries starting in January should be moderate enough not to flood the market with oversupply.