Oil dropped from a one-month high after government report showed that U.S. crude inventories and production climbed.

Nationwide, stockpiles rose for a second week, according to the Energy Information Administration. Supplies at Cushing, Oklahoma, the delivery point for WTI contracts, increased for the first time in six weeks and production rebounded from a 10-month low. Refinery operations slowed to the lowest level in seven months.

Oil climbed as much as 2.4 percent in New York before the release of the EIA data at 10:30 a.m. in Washington on speculation supplies might drop. Prices had slumped to a six-year low in August as the global glut dragged on. U.S. crude stockpiles remain about 100 million barrels above the five-year average and OPEC continues to pump above its target.

Source: Bloomberg