(Bloomberg) — Oil staged a modest rebound after collapsing to its lowest close since late 2021, with an industry group flagging another drop in US stockpiles.
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West Texas Intermediate rose above $66 a barrel after sliding by more than 4% on Tuesday, when Brent closed near $69. The industry-funded American Petroleum Institute estimated that US commercial stockpiles fell by about 2.8 million barrels last week, according to people familiar with the figures. Official data on inventories and demand are due later on Wednesday.
Crude has tumbled by almost a fifth so far this quarter on concerns that slowing growth in the US and China, the leading consumers, will crimp demand at a time of robust and expanding supplies. Market metrics — including the shape of the entire futures curve — point to conditions fast becoming far less tight.
Traders were also tracking the progress of Tropical Storm Francine, which is expected to reach hurricane strength before making landfall in Louisiana later Wednesday. With Chevron Corp., Exxon Mobil Corp. and Shell Plc among companies taking measures, federal officials said the total amount of shut-in oil represented nearly a quarter of crude production in the Gulf of Mexico.
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