Oil prices rise on economic outlook, drawdown in fuel stocks

* U.S. crude stocks surge, fuel inventories fall - EIA
* Biden's $1.9 trillion COVID-19 bill wins final approval in
House
* Global oil stocks rise as market recovery hits speed bump

By Jessica Jaganathan
SINGAPORE, March 11 (Reuters) - Crude oil prices rose on
Thursday as vaccine rollouts bolstered the economic outlook and
U.S. fuel stocks fell sharply, although gains were capped by a
surge in crude oil inventories after last month's Texas storm.
Brent crude oil futures LCOc1 for May rose 40 cents, or
0.6%, to $68.30 a barrel by 0105 GMT, while U.S. West Texas
Intermediate crude CLc1 for April was up 48 cents, or 0.7%, at
$64.92.
"Gasoline stocks fell... (which) provided the bullish offset
and eventually sent oil prices higher on the strong demand for
end products, hence an economic recovery," said Stephen Innes,
Chief Global Markets Strategist at Axi.
"Given the powerful signals from the U.S. re-opening
narrative, it still suggests that the path of least resistance
for oil prices is higher."
U.S. gasoline stocks fell by 11.9 million barrels in the
week to March 5 to 231.6 million barrels, the Energy Information
Administration (EIA) said, compared with expectations for a 3.5
million-barrel drop.​ EIA/S
Crude inventories, however, rose by 13.8 million barrels in
the week to March 5 to 498.4 million barrels, compared with
analysts' expectations in a Reuters poll for an 816,000-barrel
rise, as the nation's oil industry continued to feel the effects
of a winter storm mid-February that stalled refining and forced
production shut-ins in Texas.
Globally, stocks also remain ample with crude oil in storage
at major land and sea hubs rising last week, according to
analysts and ship trackers. Meanwhile, the U.S. House of Representatives gave final
approval on Wednesday to one of the largest economic stimulus
measures in American history, a sweeping $1.9 trillion COVID-19
relief bill that gives President Joe Biden his first major
victory in office.
Saudi Arabia's foreign minister on Wednesday said the
kingdom would take deterrent action to protect its oil
facilities, following attacks by Yemen's Iran-aligned Houthi
movement on energy sites.