NEW YORK, Oct 8 (Reuters) - Brent crude hit a 27-month low on Wednesday before recovering partially to close above $91 a barrel, with analysts saying the market could be headed for a rebound despite growing stockpiles and a gloomy world economic outlook.
U.S. crude stocks climbed by 5 million barrels to 361.65 million in the week to Oct. 3, data from the Energy Information Administration showed. The build was way above the 1.5 million barrels forecast by analysts in a Reuters poll, but in line with preliminary stockpile data issued on Tuesday by the American Petroleum Institute.
Some analysts also saw the EIA numbers differently, pointing especially to a stockpile draw in Cushing, Oklahoma, the delivery point of the U.S. crude contract, which brought down inventories there by 1.6 million barrels.
"To me, that was bullish," said Andy Lebow, vice president at Jefferies Bache in New York. "At this moment, the action is not terrible, and it wouldn't surprise me to see some kind of short covering rally on the cards as the market's been routed the last couple of days."
Brent crude for November delivery settled down 73 cents, or 0.8 percent, at $91.38 a barrel. It fell to as low as $90.57 earlier, marking a bottom since June 2012. Except for one session, Brent has been down daily from Sept. 30, losing about 6 percent in that period.
U.S. crude finished down $1.54, or 1.7 percent, at $87.31 a barrel, after hitting $86.83, its lowest level since April 2013.
The spread between the two crude markets crept back up, to above $4 after falling to as low as $2.41 on Oct. 2.
View Full Article
Copyright 2016 Thomson Reuters. Click for Restrictions.
WHAT DO YOU THINK?
Click on the button below to add a comment.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Most Popular Articles
From the Career Center
Jobs that may interest you