Oil traded near the lowest price in almost a week after U.S. crude inventories increased the most in 14 years, expanding further from a record.
Futures rose as much as 1.3 percent in New York, trimming a 6.6 percent drop on Wednesday. Stockpiles surged by 10.95 million barrels last week, the biggest volume gain since March 2001, the Energy Information Administration reported. The global market will need “some time” to re-balance, according to Nasser Al-Dossary, an adviser to the oil minister of Saudi Arabia, the world’s largest crude exporter.
Oil’s recovery has stalled amid speculation a global glut that drove prices almost 50 percent lower in 2014 will persist. U.S. crude stockpiles have climbed to 482.4 million barrels, the highest level in weekly EIA data compiled since August 1982. The nation’s output also rebounded to near a record pace, according to the Energy Department’s statistical arm.
West Texas Intermediate for May delivery advanced as much as 66 cents to $51.08 a barrel in electronic trading on the New York Mercantile Exchange and was at $50.94 at 10:44 a.m. Sydney time. The contract fell $3.56 to $50.42 on Wednesday, the lowest close since April 2. Total volume was about 70 percent below the 100-day average. Prices have decreased 4.4 percent this year.
Brent for May settlement rose as much 63 cents, or 1.1 percent, to $56.18 a barrel on the London-based ICE Futures Europe exchange. It slid $3.55 to $55.55 on Wednesday. The European benchmark crude traded at a premium of $5.14 to WTI.
Source : Bloomberg