Oil rebounds as US crude stockpiles drop

Bloomberg

Oil recovered from a one-year low as industry data showing a drop in US crude inventories allayed some of the concern that a new surplus is amassing in global markets.
Futures in New York rose as much as 2.7 percent after plunging more than 6 percent. The American Petroleum Institute was said to report a 1.55 million-barrel drop in stockpiles last week, compared with a gain forecast in a Bloomberg survey. US President Donald Trump thanked Saudi Arabia for working to reduce prices.
Crude prices in London and New York collapsed along with equities amid the highest volatility since 2016. The plunge was said to be exacerbated by Wall Street banks covering their exposure to oil-producers’ hed-ges by selling futures. With Opec and its allies scheduled to meet in Vienna in early December to discuss output plans, the International Energy Agency (IEA) warned this week that cutting supplies may have some “negative implications.”