Front-month Brent crude futures rose 23 cents to USD 65.11 a barrel by 0154 GMT. US crude climbed 54 cents to USD 60.68 a barrel. The gains came after prices for crude oil, gasoline and diesel jumped more than 3 percent on Tuesday as bullish investors made bets across the oil complex for another weekly drop in US stockpiles. "Crude oil prices rallied strongly overnight. US weekly crude oil inventories fell by a large 6.7 million barrels compared with expectations for a decline of less than 2 million barrels," ANZ bank said in a morning note on Wednesday.
Futures slid as much as 1.8 percent in New York after falling 3.1 percent the previous two sessions. Crude supplies rose by 14.2 million barrels last week, the American Petroleum Institute was said to report Tuesday. Government data Wednesday is forecast to show stockpiles climbed for a fifth week. Oil output from the U.S. will surge next year to the highest level since 1970, according to updated estimates from the Energy Information Administration.
“An inventory build-up like this one is going to be OPEC’s biggest nightmare,” said Naeem Aslam, chief market analyst at Think Markets U.K. “Demand is simply just too weak to consume the current glut that exists.”
West Texas Intermediate for March delivery lost as much as 95 cents to $51.22 a barrel on the New York Mercantile Exchange and traded at $51.56 at 9:36 a.m. in London. Total volume traded was about 10 percent above the 100-day average. The contract fell 84 cents to $52.17 on Tuesday.
Brent for April settlement dropped as much as 61 cents, or 1.1 percent, to $54.44 a barrel on the London-based ICE Futures Europe exchange. The contract fell 67 cents to $55.05 on Tuesday. The global benchmark crude traded at a premium of $2.43 to April WTI.
more at: https://www.bloomberg.com/news/articles/2017-02-07/oil-extends-decline-as-report-shows-u-s-crude-stockpiles-surge