West Texas Intermediate gained for a second day after an Energy Information Administration report showed growth in U.S. inventories slowed. Brent climbed.
Stockpiles rose 2.06 million barrels in the seven days ended Oct. 24, following a combined increase of 21 million in the previous three weeks, the EIA said. Refineries reduced their operating rate by 0.1 percentage point. Brent touched a two-week high after OPEC’s Secretary-General said the recent plunge in prices doesn’t reflect the balance between supply and demand.
“Crude may be establishing a floor here on a short-term basis,” said Tom Finlon, Jupiter, Florida-based director of Energy Analytics Group LLC. “Refinery utilization rates are probably at their nadir. Inventories will stop building by a dramatic amount simply due to the fact that refineries will start consuming more.”
WTI for December delivery rose $1.21, or 1.5 percent, to $82.63 a barrel at 12:29 p.m. on the New York Mercantile Exchange. The volume of all futures was 16 percent below the 100-day average.
Brent for December settlement gained $1.52, or 1.8 percent, to $87.55 a barrel on the London-based ICE Futures Europe exchange. The contract reached $87.94, the highest intraday price since Oct. 14. Volume was 14 percent below the 100-day average.
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