Oil Halts Advance Near $48 on Signs U.S. Fuel Stockpiles Climbed

Futures lost 0.3 percent in New York after rebounding Tuesday from the biggest drop in a week. Motor fuel stockpiles gained by 1.4 million barrels last week, while crude inventories fell by 3.6 million barrels, the American Petroleum Institute was said to report. Energy Information Administration data Wednesday is forecast to show both gasoline and crude stockpiles decreased.

“A build in products is likely bearish for prices during the driving season,” said Michael Poulsen, an analyst at Global Risk Management Ltd. The end of the driving season starting late this month will “likely conclude in a more forceful downward pressure” on prices.

West Texas Intermediate for October delivery was at $47.67 a barrel on the New York Mercantile Exchange, down 16 cents, at 10:04 a.m. in London. Total volume traded was about 24 percent below the 100-day average. The September contract expired Tuesday after climbing 27 cents to $47.64.

Brent for October settlement lost 19 cents, or 0.4 percent, to $51.68 a barrel on the London-based ICE Futures Europe exchange. Prices gained 21 cents, or 0.4 percent, to $51.87 on Tuesday. The global benchmark crude traded at a premium of $4.01 to WTI.

U.S. crude stockpiles at Cushing, Oklahoma, the delivery point for WTI and the biggest U.S. oil-storage hub, dropped by 462,000 barrels last week, said the API, according to people familiar with the data. Nationwide crude inventories probably decreased by 3.48 million barrels last week, while gasoline supplies slid 1.25 million, according to analysts surveyed by Bloomberg.
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