Oil slipped to near $56 a barrel, after snapping a record run of declines, as traders assessed signs of rising U.S. crude inventories and a stronger dollar.
Futures in New York fell as much as 1.2 percent after recovering slightly on Wednesday from an 18 percent drop over the previous 12 sessions. An industry report was said to show U.S. stockpiles rose 8.8 million barrels last week, more than double the increase forecast in a Bloomberg survey before government data due Thursday. Meanwhile the Bloomberg Dollar Spot Index erased earlier losses to trade higher on the day.
West Texas Intermediate for December delivery traded at $56.05 a barrel on the New York Mercantile Exchange, down 20 cents, at 11:03 a.m. in London. Prices rose 56 cents to $56.25 Wednesday, following the biggest one-day drop in more than three years in the previous session. Total volume traded Thursday was about 36 percent higher than the 100-day average.
Brent for January settlement rose 31 cents to $66.43 a barrel on the London-based ICE Futures Europe exchange, after gaining 65 cents on Wednesday. The global benchmark crude was at a $10.09 premium to WTI for the same month.