Crude inches up, as investors continue to digest bearish supply data

WTI crude closed above $ 45 a barrel on Thursday, while brent closed above $ 48

Investing.com — Crude futures ticked up on Thursday during a choppy day of trading, as investors continued to react to bearish supply data from a massive stockpile build last week.

On the New York Mercantile Exchange, WTI crude for December delivery traded in a broad range between $ 44.99 and $ 46.10 a barrel, before settling at $ 45.29, up 0.09 or 0.20% on the session. A session earlier, futures fell to near monthly lows after slipping below $ 45 a barrel for the first time since October 1.The recent downturn has erased all the gains from a rally in October when WTI crude jumped nearly 9% in a five-day span to surge above $ 50 a barrel, reaching a fresh 11-week high.

On the Intercontinental Exchange (ICE), brent crude for December delivery wavered between $ 47.70 and $ 48.72 a barrel, before closing at $ 48.11, up 0.26 or 0.54% on the day. futures are still down by approximately 1.5% over the last month of trading. Meanwhile, the spread between the international and U.S. domestic benchmarks of crude stood at $ 2.82, above Wednesday’s level of $ 2.41 at the close of trading.

Energy traders continued to digest reports of a surprising build last week when crude stockpiles surged by 8 million for the week ending on Oct. 16. At 476.6 million barrels, U.S. crude oil inventories remain near levels not seen for this time of year in at least 80 years. Crude inventories nationwide increased by more than twice the level anticipated by analysts.

Global oil prices are down by more than 40% since OPEC rattled energy markets last November by keeping its production ceiling above 30 million barrels per day in an effort to defend its market share. The tactic triggered a prolonged battle with U.S. shale producers, saturating global markets with a glut of supply. For the most part, market analysts do not expect prices to return to $ 70 a barrel until the global supply-demand imbalance is corrected.

The participants at a OPEC meeting in Vienna on Wednesday reportedly did not address any strategies to slash global crude production. The meeting featured eight non-OPEC members, including Russia.

Investors await the release of Friday’s weekly rig count from oil services firm Baker Hughes (N:) for further indications on production trends in the U.S on a long-term basis. Last week, the U.S. oil rig count fell by 10 to 595, the lowest level since July, 2010. It marked the seventh straight week of weekly declines.

The , which measures the strength of the greenback versus a basket of six other major currencies, soared more than 1.25% to an intraday high of 96.41. The dollar surged against the euro, after European Central Bank president Mario Draghi sent strong hints that the central bank could lower interest rates and extend its asset-purchasing program before the end of the year.

Dollar-denominated commodities such as crude become more expensive for foreign purchasers when the dollar appreciates.

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Crude inches up, as investors continue to digest bearish supply data