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Bloomberg
Oil halted gains near the highest closing price in five weeks as industry data showed U.S. gasoline stockpiles expanded, keeping supplies at the highest seasonal level in more than two decades.
Futures were little changed in New York, having added 12 percent the previous four sessions after Saudi Arabia said it was prepared to act to stabilize markets. U.S. inventories of motor fuel increased by 2.18 million barrels last week, the American Petroleum Institute was said to report Tuesday. A Bloomberg survey ahead of government data forecasts gasoline inventories fell, while crude stockpiles rose.
Oil has advanced more than 17 percent since closing below $40 a barrel and tumbling into a bear market earlier this month. Russian Energy Minister Alexander Novak said last week that the nation was open to cooperating to stabilize markets after Saudi Energy Minister Khalid Al-Falih said informal talks next month may lead to action. A deal to freeze output was first proposed in February but a meeting in April ended with no final accord.
“The market right now is searching for its next driver,” said Gene McGillian, a senior analyst and broker at Tradition Energy in Stamford, Connecticut. “The building of gasoline inventories is really going to put some pressure on the market.”
West Texas Intermediate for September delivery traded down 17 cents, or 0.4 percent, at $46.41 a barrel at 9:10 a.m. on the New York Mercantile Exchange. The contract gained 1.8 percent to $46.58 on Tuesday, closing at the highest level since July 12. Total volume traded Wednesday was 11 percent above the 100-day average.