Oil halted its decline near the lowest price in more than six years before weekly U.S. crude inventory and production data.
Futures rose as much as 2.4 percent in New York after losing 8.7 percent in the past three days, with OPEC having effectively abandoned its output target at a Dec. 4 meeting. U.S. stockpiles probably increased by 1.3 million barrels for an 11th week of gains, a Bloomberg survey showed before government data Wednesday. The industry-funded American Petroleum Institute was said to have reported Tuesday a 1.9 million drop in supplies.
Oil is trading near levels last seen during the global financial crisis as Saudi Arabia leads the Organization of Petroleum Exporting Countries to maintain output and defend market share against higher-cost producers, fueling a record supply glut. Pipeline owner Kinder Morgan Inc. said Tuesday it’s cutting its full-year dividend to conserve cash amid the price slump.
West Texas Intermediate for January delivery climbed as much as 88 cents to $38.39 a barrel on the New York Mercantile Exchange and was at $37.74 at 12:53 p.m. London time. The contract decreased 14 cents to $37.51 on Tuesday, the lowest close since February 2009. The volume of all futures traded was about 29 percent above the 100-day average.