Oil halted its slide after falling the most in six weeks as investors weighed rising demand against expanding OPEC production.
Futures climbed as much as 1.3 percent in New York after Monday’s 5.1 percent drop. Global demand is increasing while non-OPEC nations are supplying less, according to Abdalla Salem El-Badri, the secretary-general of the Organization of Petroleum Exporting Countries. The 12-member group sees output from other producers declining by 130,000 barrels a day next year as the U.S. shale boom sputters, according to its monthly report.
Oil has failed to sustain gains after advancing above $50 a barrel last week for the first time since July amid speculation the global market remains oversupplied. OPEC said it produced 31.57 million barrels a day last month, the most since 2012, as it predicted stronger demand for its crude next year.
West Texas Intermediate for November delivery rose as much as 62 cents to $47.72 a barrel on the New York Mercantile Exchange, and was at $47.52 at 12 p.m. Sydney time. The contract fell $2.53 to $47.10 on Monday. The volume of all futures traded was almost three times the 100-day average. Prices are down about 11 percent this year.
Brent for November settlement climbed as much as 64 cents, or 1.3 percent, to $50.50 a barrel on the London-based ICE Futures Europe exchange. It decreased $2.79 to $49.86 on Monday. The European benchmark crude was at a premium of $2.92 to WTI.