NEW YORK: Despite an unexpected build in US oil inventories, US oil prices Wednesday declined only modestly.
Analysts said the small price decline showed the oil market's continued bullishness.
US benchmark West Texas Intermediate for delivery in August dipped 20 cents to $98.24 a barrel.
In London European benchmark Brent crude for August added 10 cents at $106.12.
The US Department of Energy on Wednesday said that US crude reserves last week climbed by 300,000 barrels to 394.1 million barrels. Analysts' consensus forecast had been for a drop of 400,000 barrels, according to a survey by Dow Jones Newswires.
But oil prices have been trending higher in recent days, in part due to concerns that the Syria crisis could expand to other countries in the oil-rich Middle East.
Analysts said the market is currently looking for reasons to push oil higher.
"The momentum is still higher," said Kyle Cooper, managing partner at IAF Advisors. "You've got a lot of funds piling in and they're not willing to give that up."
"The market is continuing to show it's trying to keep its rally alive," said Gene McGillian, broker and analyst at Tradition Energy.
Also Wednesday, the Federal Reserve maintained its massive bond-buying plan to support the economy.
Analysts said the Fed's move to keep its bond-buying program unchanged did not move the oil market significantly because it was expected.
But Federal Reserve Chairman Ben Bernanke said the bond-purchase program could be tapered "later this year" and that the program could end entirely by the middle of 2014 if growth is strong enough.
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