Oil retreated from a three-month high after an industry report showed a large build in U.S. crude and gasoline stockpiles, reviving concerns over renewed oversupply.
Futures in New York fell as much as 1%, yet held above $60 a barrel after rising 3.7% over the past four trading days as the U.S. and China struck a preliminary trade pact. The American Petroleum Institute reported crude inventories swelled by 4.7 million barrels last week and gasoline stockpiles by 5.6 million barrels, according to people familiar with the data. That would be the largest gasoline build since January if confirmed by official government figures due Wednesday.
West Texas Intermediate crude for January delivery, which expires Thursday, fell 48 cents, or 0.8%, to $60.46 a barrel on the New York Mercantile Exchange as of 10:56 a.m. in London. The contract finished up 1.2% on Tuesday at $60.94, the highest close since Sept. 16. The more-active February contract traded 49 cents lower at $60.38.
Brent for February settlement declined 31 cents to $65.79 a barrel on the London-based ICE Futures Europe Exchange after climbing 1.2% Tuesday. The global benchmark crude traded at a $5.40 premium to WTI for the same month.
Source : Bloomberg