Oil rebounded to trade near $45 a barrel as investors weighed shrinking US stockpiles against signs of lower demand for crude as refineries shut for maintenance.
Futures advanced as much as 1.1% in New York, trimming Wednesday’s 4.1 percent decline. Output climbed by 19,000 barrels a day to 9.14 million a day while refinery utilization dropped by 2.2% points, according to a report from the Energy Information Administration. Nationwide crude stockpiles fell more than the median estimate in a Bloomberg survey.
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Oil is down more than 25% from this year’s closing peak in June amid speculation a global glut that drove prices to a six-year low will be prolonged. U.S. crude stockpiles remain almost 100 million barrels above the five-year seasonal average, even after declining a second week through Sept. 18, according to EIA data.
“All the factors that sent oil lower are still there,” David Lennox, an analyst at Fat Prophets in Sydney, said by phone. “Oil seems to be holding in a range but the market really needs to see sustainable cuts to production.”
West Texas Intermediate for November delivery rose as much as 50 cents to $44.98 a barrel on the New York Mercantile Exchange, and was at $44.77 at 3:05 p.m. Sydney time. The contract slid 4.1 percent to $44.48 on Wednesday. The volume of all futures traded was about 26 percent below the 100-day average. Front-month prices have decreased 16 percent this year.
U.S. Stockpiles
Brent for November settlement was 22 cents higher at $47.97 a barrel on the London-based ICE Futures Europe exchange. The contract lost $1.33 to $47.75 on Wednesday. The European benchmark crude traded at a premium of $3.21 to WTI.
US crude stockpiles dropped by 1.9 million barrels to 454 million, the EIA reported Wednesday. Inventories were forecast to decline by 1.25 million, according to the median estimate of eight analysts surveyed by Bloomberg. Supplies at Cushing, Oklahoma, the delivery point for the WTI contract, slid for a fourth week to 54 million, the EIA data shows.
Refiners in the U.S. typically slow operations during September to perform maintenance after the end of the summer peak driving season. Utilization rates last week decreased by the most since the week ended Jan. 16, according to the EIA.
Venezuelan President Nicolas Maduro reiterated the nation is seeking to stabilize prices with the cooperation of other OPEC members, according to a Petroleos de Venezuela SA statement posted on the company’s website. The Organization of Petroleum Exporting Countries has pumped above its 30-million-barrel-a-day quota for the past 15 months.
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