Oil Trades Near $54 as U.S. Crude Stockpiles Resume Decline

Futures were little changed in New York after falling 0.2 percent Wednesday. Crude inventories fell by 2.44 million barrels for a fifth decline in six weeks, according to the Energy Information Administration. U.S. oil production rose a second week. OPEC output slid in October as tensions between Iraq’s central government and the semi-autonomous Kurdistan region crimped supply.

Oil advanced for a second month in October on signs the Organization of Petroleum Exporting Countries will agree at its Nov. 30 meeting to prolong cuts by its members and allied nations. The United Arab Emirates backs extending the supply agreement, Energy Minister Suhail Al Mazrouei said Wednesday, echoing earlier support by Saudi Arabia and Russia.

“OPEC may be trumpeting success as inventories close their gap to the most recent five-year average,” said Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas SA. “It has progressed, but OPEC is not out of the woods. The stock-draws are not enough to reverse the large builds in oil inventories that we saw between 2014 and 2016.”

U.S. crude output rose by 46,000 barrels a day to 9.55 million a day, according to a report Wednesday by the EIA. That’s the highest level in a month. Gasoline stockpiles fell for a second week to 212.8 million barrels, the lowest level since August 2015.
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