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Oil futures waver as glut concerns remain

Published 30/10/2015, 02:25 am
© Reuters.  Crude oil futures fluctuate between gains and losses
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Investing.com - Oil futures swung between gains and losses on Thursday, amid uncertainty about how quickly the global glut of crude is set to shrink.

Crude oil for delivery in December on the New York Mercantile Exchange shed 17 cents, or 0.37%, to trade at $45.77 a barrel during U.S. morning hours. Prices traded in a range between $45.18 and $46.75.

A day earlier, Nymex crude prices soared $2.74, or 6.34%, following the release of bullish U.S. weekly supply data.

The U.S. Energy Information Administration said crude oil inventories increased by 3.37 million barrels last week. Market analysts' expected a crude-stock rise of 3.41 million barrels.

However, total U.S. crude supplies still stood near levels not seen for this time of year in at least the last 80 years.

The report also showed that gasoline inventories decreased by 1.1 million barrels, compared to expectations for a decline of 0.9 million barrels, while distillate stockpiles fell by 3.0 million barrels.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for December delivery dipped 22 cents, or 0.46%, to trade at $48.83 a barrel. On Wednesday, Brent prices jumped $2.24, or 4.79%.

Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the Organization of Petroleum Exporting Countries last year not to cut production.

Oil prices have lost nearly 60% since last summer as lingering concerns over a glut in world markets drove down prices.

Meanwhile, the spread between the Brent and the WTI crude contracts stood at $3.06 a barrel, compared to $3.11 by close of trade on Wednesday.

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