Improving outlook for oil prices

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Electricity demand in the Texas grid, which is overseen mostly by the Electric Reliability Council of Texas (ERCOT), was lower than usual for the time of year "mainly because of the customer outages in storm-affected areas in South Texas and along the Gulf Coast and cooler temperatures across much of the state", EIA said.

Crude oil prices rose on Wednesday after the International Energy Agency (IEA) said a global surplus of crude was starting to shrink, even though US data showed another big increase in domestic inventories due to Hurricane Harvey. The dollar's rally had paused which helped underpin energy prices, although the U.S. currency moved higher again ahead of the NY open.

US gasoline stocks slumped by 8.4 million barrels, the largest weekly decline since the data was first recorded in 1990.

On Wednesday, the International Energy Agency said global oil supplies fell for the first time in four months in August, while also revising its 2017 oil demand estimate up to 1.6 million barrels a day from its July estimate of 1.5 million. Still, on a net basis, USA crude inventory builds could grow to record levels with smaller production draws in the coming week, Goldman Sachs said. Meanwhile, U.S. gasoline inventories tumbled the most on record last week as refineries in Texas are still recovering from Hurricane Harvey.

October West Texas Intermediate crude for October delivery jumped $US1.07, or 2.2%, to settle at $US49.30 a barrel in NY - the highest finish since August 9.

Industry and government oil products stocks stood at 1,796.3 million barrels at in July in the 34 countries that make up the Organisation for Economic Cooperation and Development.

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Data from the Energy Information Administration shows a build in US crude inventories last week of 5.9 million barrels, exceeding expectations.

It raised global oil demand outlook by 1.7% to 1.6 million barrels per day for this year and by 1.4% to 1.4 million barrels per day for the next.

The reports from the IEA and OPEC offset concerns over the EIA stockpile build, supporting prices. The IEA said it is time to reexamine the region's energy security with the United States adding refined products to the country's strategic petroleum reserves alongside crude.

USA gasoline futures dipped after the data, and were down 0.4 percent at $1.6511 a gallon.

After being hurt by Hurricane Harvey, positive sentiments have started building up in the oil space with a wave of positive news.

On Tuesday, OPEC, in its monthly report, also pointed to a decline in its production in August as a sign that supply and demand could be moving further toward balance.