A pumpjack brings oil to the surface in the Monterey Shale, California, April 29, 2013. Reuters/Lucy Nicholson
Brent settled steady and U.S. crude slightly lower on Monday after prices were whipsawed by volatility as Saudi Arabia pledged to work toward oil price stability but traders worried about a global supply glut and signs of rising U.S. stockpiles.
Crude rallied early after Saudi Arabia pledged to work toward oil price stability. A run-up in U.S. gasoline and ultralow sulfur diesel (ULSD) futures also boosted the petroleum complex.
But prices gave back gains on signs of a growing glut.
Market intelligence firm Genscape reported a build of 2.2 million barrels at the Cushing, Oklahoma delivery point for U.S. crude futures for the week ended Nov. 20, traders who saw the data said.
Analysts polled by Reuters forecast that data would probably show crude inventories across the United States rose by 1.1 million barrels last week. [EIA/S]
“The overarching concern in this market is the growing inventory levels for crude, and that doesn’t seem to be easing despite the strong refinery runs we’ve been having,” said Phil Flynn, analyst at the Price Futures Group in Chicago.
Brent futures LCOc1 settled up 17 cents at $45.83 a barrel.
U.S. crude’s West Texas Intermediate (WTI) futures CLc1 finished the session down 15 cents at $41.75.
The Saudi statement came as oil held barely above 2-1/2-month lows, and was greeted with a mix of enthusiasm and skepticism. Despite similar pledges before, the Saudis and…