Oil hovered near multi-month lows on Thursday with Brent under $50 a barrel after investors sold crude on worries about rising U.S. gasoline inventories as peak summer demand comes to an end. Gasoline stocks in the United States rose more than expected, overriding a bullish picture from a larger-than-expected drop in crude stockpiles and pushing prices down overnight to multi-month lows.
“We’re talking about September crude runs now and that’s pretty much past summer,” said Tony Nunan, a risk manager at Mitsubishi Corp. “The U.S. has (cheap) crude supply and can keep runs high but the rest of the world is not looking so good … We remain oversupplied and world-wide inventories are high.”
September Brent crude LCOc1 gained 12 cents at $49.71 a barrel by 0305 GMT after dropping to $49.02 on Wednesday, the lowest since Jan. 30. U.S. crude CLc1 edged up 2 cents at $45.17 a barrel, after touching an intraday low of $44.83 in the previous session, the weakest since March 20.