Oil holds two-day drop after US stockpiles rise most since July

Oil steadied after a two-day decline, as the Energy Information Administration confirmed the biggest increase in US stockpiles since July.

West Texas Intermediate traded under $60, after losing 2.4% over the prior two sessions, while Brent settled below $64 on Wednesday. The EIA report showed crude inventories rose 5.2 million barrels in the week ending Oct. 31. That was slightly lower than a forecast by a closely followed industry group, and a drop in product inventories limited the bearish momentum.

The US benchmark has fallen about 17% this year as increased production from OPEC+ and non-member nations amplifies concerns about a global glut. The boss of commodities trader Mercuria said at the Adipec conference in Abu Dhabi on Wednesday that the oversupply is forming slowly, but is likely to be as much as 2 million barrels a day next year.

The EIA report showed US gasoline stocks dropped nearly 5 million barrels to the lowest in three years, even as exports and demand were relatively flat.

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