West Texas Intermediate for October delivery fell 78 cents to $46.84 a barrel on the New York Mercantile Exchange at 11:48 a.m. in London. The contract jumped $2.12, or 4.7 percent, to $47.62 a barrel on Thursday, the biggest gain since April 8. Total volume traded was 28 percent below the 100-day average. Brent for November settlement slipped 85 cents, or 1.7 percent, to $49.14 a barrel on the London-based ICE Futures Europe exchange. Prices climbed 4.2 percent to $49.99 a barrel on Thursday. The global benchmark crude traded at a $1.68 premium to WTI for November delivery. U.S. crude supplies declined to 511.4 million barrels in the week ended Sept. 2, according to EIA data. Inventories reached 543.4 million barrels in the week ended April 29, the highest since 1929.
Futures dropped 1.3 percent in New York after rising 0.3 percent on Tuesday. Motor-fuel inventories climbed by 9.2 million barrels last week, the American Petroleum Institute was said to report. That would be the biggest gain since January 2016 if replicated in government data due later on Wednesday. Nationwide crude stockpiles declined, according to the API data.
“This bears all the hallmarks of a year-end lull in U.S. fuel demand, which in turn should help safeguard the current bout of range-bound trading,” said Stephen Brennock, an analyst at PVM Oil Associates Ltd. in London.
Oil is averaging about $54 a barrel this quarter, the highest in more than two years, after the Organization of Petroleum Exporting Countries and its allies agreed to extend output cuts to the end of 2018. The new deal brought in Libya and Nigeria, assigning them a combined cap. Libya will maintain current output to stay in line with the agreement, a person familiar with the matter said.
U.S. crude inventories dropped by 5.48 million barrels last week, the API said Tuesday, according to people familiar with the data. A Bloomberg survey predicted government data will show a decline of 2.5 million barrels.
more at: https://www.bloomberg.com/news/articles/2017-12-05/oil-dips-toward-57-on-signs-u-s-gasoline-stockpiles-expanded