Oil snapped a six-day losing streak as a surprise drop in U.S. stockpiles and tumbling OPEC output helped to offset more evidence the global economy is weakening.
Futures in New York rose as much as 1.2% after falling 8.6% since Sept. 23. The American Petroleum Institute reported U.S. inventories shrunk by 5.9 million barrels last week, according to people familiar with data. The official Energy Information Administration figures are due later on Wednesday and analysts surveyed by Bloomberg are predicting an increase. Meanwhile, a U.S. manufacturing gauge that fell to a 10-year low added to pessimism on demand.
West Texas Intermediate for November delivery rose 53 cents, or 1%, to $54.15 a barrel on the New York Mercantile Exchange as of 10:17 a.m. in Singapore. It closed down 0.8% Tuesday after losing 7.5% in the third quarter.
Brent for December settlement climbed 41 cents, or 0.7%, to $59.30 a barrel on the ICE Futures Europe Exchange after tumbling 3.1% on Tuesday. The global benchmark crude traded at a $5.27 premium to WTI for the same month.
Source : Bloomberg