Oil’s decline below $45 a barrel faltered as U.S. drillers idled rigs for a second week amid a global glut.
Futures increased as much as 0.8 percent in New York, paring Friday’s 2.8 percent drop. The number of rigs seeking oil slid to the lowest level in almost two months, according to Baker Hughes Inc. China’s crude processing rose last month as gasoline demand encouraged higher refinery output, data from the National Bureau of Statistics showed Sunday.
Oil slumped last week as Goldman Sachs Group Inc. said the surplus is bigger than it thought and prices could fall as low as $20 a barrel. Leading members of the Organization of Petroleum Exporting Countries are sustaining output while U.S. crude stockpiles remain about 100 million barrels above the five-year seasonal average.
West Texas Intermediate for October delivery rose as much as 34 cents to $44.97 a barrel on the New York Mercantile Exchange and was at $44.85 at 9:05 a.m. Sydney time. The contract slid 3.1 percent last week. The volume of all futures traded was about 60 percent below the 100-day average. Prices have decreased 16 percent this year.
Brent for October settlement, which expires Tuesday, was 7 cents higher at $48.21 a barrel on the London-based ICE Futures Europe exchange. It lost 75 cents, or 1.5 percent, to $48.14 on Friday. The more-active November future rose 9 cents to $49.13.
Source : Bloomberg