Oil held near $58 after falling a third time in four days before U.S. government data forecast to show the country’s crude supplies shrank for a sixth week.
Futures gained as much as 0.4 percent in New York. Crude inventories probably fell by 1.45 million barrels through the week ended June 5, according to a Bloomberg survey before an Energy Information Administration report Wednesday. OPEC, which maintained its production quota at a June 5 meeting, is unlikely to cut supply until the shale threat wanes, according to Hindustan Petroleum Corp.’s refineries director B.K. Namdeo.
Oil’s recovery from a six-year low has faltered near $60 a barrel amid speculation the global glut will persist as rising prices spur a rebound in U.S. output. The nation’s crude stockpiles are almost 100 million barrels above the five-year average for this time of the year, according to the EIA.
West Texas Intermediate for July delivery rose as much as 24 cents to $58.38 a barrel in electronic trading on the New York Mercantile Exchange and was at $58.32 at 10:14 a.m. Sydney time. The contract fell 1.7 percent to $58.14 on Monday. The volume of all futures traded was about 88 percent below the 100-day average. Prices have increased 9 percent this year.
Brent for July settlement was 14 cents higher at $62.83 a barrel on the London-based ICE Futures Europe exchange. The contract slid 62 cents, or 1 percent, to $62.69 a barrel on Monday. The European benchmark crude traded at a premium of $4.51 to WTI.
Source : Bloomberg