(For Bloomberg fair value curves, see CFVL <GO>.)
Oct. 30 (Bloomberg) -- West Texas Intermediate crude decreased, extending a second monthly loss, after a government report showed that U.S. inventories surged to a four-month high.
Futures fell after the Energy Information Administration said stockpiles rose 4.09 million barrels to 383.9 million last week. A 2.4 million-barrel gain was projected in a Bloomberg survey. The EIA, the Energy Department’s statistical arm, said supplies at Cushing, Oklahoma, the delivery point for WTI traded in New York, increased 2.18 million barrels to 35.5 million, a two-month high.
WTI for December delivery declined $1.17, or 1.2 percent, to $97.03 a barrel at 10:37 a.m. on the New York Mercantile Exchange. The contract traded at $97.15 before the release of the report at 10:30 a.m. in Washington. The volume of all futures traded was 25 percent lower than the 100-day average. Prices are down 5.2 percent this month after losing 4.9 percent in September.
Brent for December settlement rose 15 cents to $109.16 a barrel on the London-based ICE Futures Europe exchange. Volume was 21 percent below the 100-day average. The European benchmark traded at an $12.13 premium to WTI, up from $10.81 yesterday.
Crude supplies gained 7.9 percent in the six weeks ended Oct. 25. The U.S. will account for about 21 percent of global oil demand this year, almost double the estimate for China, the second-largest consumer, according to forecasts from the International Energy Agency in Paris.
U.S. crude production declined 43,000 barrels a day to 7.85 million. Output has surged to the highest level since 1989 as the combination of horizontal drilling and hydraulic fracturing, or fracking, has unlocked supplies trapped in shale formations in the central part of the country.
Refineries operated at 87.3 percent of capacity, up 1.4 percentage points from the prior week. Utilization rates usually peak during the summer months when U.S. gasoline demand rises and decline in September and October.
Gasoline stockpiles dropped 1.71 million barrels to 213.8 million, the lowest level of 2013. A 200,000-barrel decline was forecast, according to the median estimate of 11 analysts surveyed by Bloomberg.
Supplies of distillate fuel, a category that includes heating oil and diesel, declined 3.06 million barrels to 122.7 million. A 1 million-barrel drop was projected in the survey.
The Federal Reserve will release a policy statement today after a two-day meeting. Economists expect the central bank will announce that it will maintain its $85 billion in monthly bond purchases. The Fed will decide to keep purchases of mortgage- backed securities at $40 billion and Treasury buying at $45 billion, according to the survey of economists.
Brent gained earlier today on production losses in Libya, holder of Africa’s largest reserves. Libya was unable to restart its 350,000 barrel-a-day Sharara field as intended, Moftah Alamin, a spokesman for Tuareg protesters, said by phone yesterday. Minority Tuareg nomads pressing for official recognition of their language and greater political rights have halted flows from the oil field, one of Libya’s biggest.
Production fell nationwide to between 250,000 barrels and 300,000 barrels a day from more than 600,000 on Oct. 21, Mohamed El Elharari, a spokesman for Tripoli-based National Oil Corp., said in a phone interview on Oct. 28. Eni SpA, Italy’s biggest oil company, said in an earnings statement today that its third- quarter profit fell 29 percent partly because turmoil in Libya cut output.
--With assistance from Grant Smith in London. Editors: Richard Stubbe, Charlotte Porter