Oil steadies on record US inventory pile-up

By Bloomberg

NEW YORK: Oil steadied in New York after a record surge in US crude inventories sent prices plunging on Wednesday, capping the longest losing streak in two months.

West Texas Intermediate (WTI) futures recovered 1.1% after tumbling 2.9% on Wednesday following a report from the Energy Information Administration that stockpiles increased by 14.4 million barrels last week. Opec members claiming exemption from an agreement to limit supplies boosted production in October, according to a Bloomberg survey.

A measure of oil volatility is near the highest level in more than a month as investors in broader fi nancial markets stay cautious amid a tightening White House race. “If growing pessimism about a credible produc tion deal has knocked oil bulls out, the EIA deliver ed another serious blow for them whilst they were lying on the floor,“ said Ta mas Varga, an ana lyst at PVM Oil As sociates.

WTI for December delivery climbed 51 cents to $45.85 a bar rel on the New York Mercantile Ex change at 11:49 am in London. The contract fell $1.33 to $45.34 on Wednesday, the lowest close since September 27