Oil swung between gains and losses in New York as the International Energy Agency said global markets are better supplied than earlier this year and investors speculated U.S. stockpiles probably fell last week.
Futures were little changed after sliding as much as 0.8 percent, before rebounding 0.6 percent. The Paris-based IEA said in a monthly report today that global supplies rose by 200,000 barrels to 91.1 million barrels a day in May as the U.S. raised output. Government data today may show U.S. inventories dropped the most in five months as refineries raised production, according to a Bloomberg News survey.
“There’s still an overhang in crude inventories in the U.S. and stocks have built globally in the first half of the year,” Gareth Lewis-Davies, an analyst at BNP Paribas SA in London, said by phone. “The market is being affected, as with other commodities, by swings in trader risk aversion.”
Oil for July delivery fell 12 cents to $83.22 a barrel in electronic trading on the New York Mercantile Exchange as of 10:54 a.m. London time. It traded as low as $82.63 a barrel earlier, before climbing to $83.82.