Oil gained after suffering its worst reaction to an OPEC meeting in more than four years.
Futures rose 0.8% in New York after an industry report showed U.S. oil inventories declined by almost 5 million barrels last week. Prices were still far from recovering Tuesday’s 4.8% decline, when concerns about the global economy overshadowed OPEC and its allies’ decision to extend output cuts for nine months. It was the biggest drop following an OPEC gathering since November 2014.
West Texas Intermediate crude for August delivery gained 43 cents to $56.68 a barrel on the New York Mercantile Exchange as of 11:11 a.m. London time. It slid 4.8% on Tuesday, the most in over a month.
Brent for September settlement rose 61 cents to $63.01 a barrel on the ICE Futures Europe Exchange after slumping 4.1% in the previous session. The spread between contracts for December 2019 and December 2020 narrowed on Tuesday to just $1.91, compared with $2.44 for the same WTI deliveries. The global benchmark crude traded at a premium of $6.19 to WTI for the same month on Wednesday.
Source : Bloomberg