© Reuters. NYMEX crude recovers in Asia from overnight drop Investing.com – Crude oil prices gained in Asia on Thursday in a soft bounce to an overnight drop on booming U.S. stockpiles.
On the New York Mercantile Exchange, WTI crude for December delivery rose 0.24% to $ 45.31 a barrel.
Overnight, crude futures fell considerably on Wednesday dipping to near October lows, as U.S. stockpiles shot up last week adding fuel to long-term concerns related to a near record-high supply glut on energy markets nationwide.
On the Intercontinental Exchange (ICE), for December delivery wavered between $ 47.55 and $ 48.65 a barrel, before closing at $ 47.88, down 0.84 or 1.70% on the day. Brent futures have lost at least 1.5% in two of the last three sessions. Meanwhile, the spread between the international and U.S. benchmark of crude stood at $ 2.68, above Tuesday’s level of $ 2.41 at the close of trading.
Crude futures opened dramatically lower in U.S. morning trading after the American Petroleum Institute reported a build of 7.1 million barrels last week. WTI crude was already down more than 2% on the session, when the U.S. Energy Information Administration (EIA) said 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. Total motor gasoline inventories decreased by 1.5 million barrels last week, while distillate fuel inventories decreased by 2.6 million.
U.S. crude production, meanwhile, remained unchanged at 9.096 million barrels per day. A week earlier, output fell by 76,000 bpd to its lowest level on the calendar year. Oil prices are down by more than 40% since OPEC roiled global energy markets last year by leaving its production ceiling unchanged as a mechanism for defending its market share.
On Wednesday, an OPEC meeting in Vienna with eight non-OPEC members, including Russia, did not produce any meaningful headlines. While the energy officials reportedly discussed a number of topics including some of the detrimental risks facing major oil investments, the participants did not address potential production cuts. Venezuela, which has seen its economy crash since the start of the crude downturn last year, was expected to propose a strategy for implementing an oil band between $ 70 and $ 100 a barrel.
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NYMEX crude gains in Asia on soft bounce from overnight drop
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