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Bloomberg
Oil extended gains after weekly government data showed US inventories dropped to the lowest since February, trimming stockpiles at the highest seasonal level in at least three decades.
November futures rose as much as 1.2 percent in New York after advancing 2.9 percent on Wednesday. Inventories fell by 6.2 million barrels last week, according to the Energy Information Administration. A Bloomberg survey before the report forecast a 3.25 million barrel gain. OPEC members Saudi Arabia and Iran, whose rivalry derailed an oil supply accord earlier this year, met in Vienna a week before the organization holds talks in Algeria.
Oil has fluctuated since August’s rally on speculation the
Organization of Petroleum Exporting Countries and Russia will agree on ways to stabilize the market when they meet Sept. 28. While Venezuelan President Nicolas Maduro said members are close to a deal, all but two of 23 analysts surveyed by Bloomberg said an agreement to limit production is unlikely. Freezing output was proposed in February, but a meeting in April ended with no final accord.
“US crude oil inventories fell hard last week,†said Tamas Varga, an analyst at PVM Oil Associates Ltd. in London. “A good day for oil bulls, but their optimism might not last as the oversupplied nature of the global oil market shows no signs of easing.†West Texas Intermediate for November delivery advanced as much as 54 cents to $45.88 a barrel on the New York Mercantile Exchange and was at $45.81 at 9:41 a.m. in London. The contract rose $1.29 to close at $45.34 on Wednesday. Total volume traded was about 31 percent below the 100-day average. Prices have averaged about $44.90 this quarter.
US STOCKPILES
Brent for November settlement rose as much as 53 cents, or 1.1 percent, to $47.36 a barrel on the London-based ICE Futures Europe exchange. Prices climbed 95 cents, or 2.1 percent, to $46.83 on Wednesday. The global benchmark traded at a $1.46 premium to WTI.
Crude stockpiles at Cushing, Oklahoma, the delivery point for WTI and the biggest US oil storage hub, increased by 526,000 barrels last week to 62.7 million, the EIA reported Wednesday.
Output increased for a second week to 8.5 million barrels a day. Gasoline inventories fell to 225 million barrels.
Saudi Arabia, Iran and Qatar met in Vienna to prepare for the discussions in Algiers next week, according to three people familiar with the matter.