Oil traded near the lowest price in three months after U.S. government data showed crude supplies at the nation’s biggest storage hub increased the most since April.
Futures were little changed in New York after falling 3.1 percent on Wednesday, the most since July 6. Stockpiles at Cushing, Oklahoma, the delivery point for U.S. benchmark oil, rose for a third week through July 10, according to the Energy Information Administration. The full impact of higher Iranian exports won’t be felt until 2016 as the nuclear deal is implemented, banks including Goldman Sachs Group Inc. predict.
Oil rebound from a six-year low has faltered amid speculation a global glut will persist as U.S. drillers return rigs to fields and Iran seeks to regain market share. While total U.S. crude inventories declined last week, supplies remain almost 100 million barrels above the five-year average for this time of the year, according to the EIA.
West Texas Intermediate for August delivery was at $51.70 a barrel in electronic trading on the New York Mercantile Exchange, up 29 cents, at 10:27 a.m. Sydney time. The contract slid $1.63 to $51.41 on Wednesday, the lowest close since April 9. The volume of all futures traded was about 4 percent below the 100-day average. Prices are 3 percent lower this year.
Brent for August settlement, which expires Thursday, was 40 cents higher at $57.45 a barrel on the London-based ICE Futures Europe exchange. It fell $1.46 to $57.05 on Wednesday. The European benchmark crude was at a premium of $5.64 to WTI. The more-active September contract rose 38 cents to $57.50.
Source : Bloomberg