Futures advanced 1.1 percent in New York and 0.8 percent in London. Crude has tumbled on concern that a global supply glut is forming. Gasoline increased after U.S. government data showed that stockpiles of the fuel slipped last week as demand climbed.
“This is basically a relief rally,’ Tim Evans, an energy analyst at Citi Futures Perspective in New York, said by phone. ‘‘The market is extremely oversold technically and exhausted. There were nice draws in product inventories that are also giving the market a boost.’’
WTI for November delivery advanced 92 cents to settle at $82.70 a barrel on the New York Mercantile Exchange. It earlier touched $79.78, the lowest intraday price since June 29, 2012. The volume of all futures traded was 72 percent above the 100-day average at 2:54 p.m.
Brent for November settlement, which expired today, increased 69 cents to end the session at $84.47 a barrel on the London-based ICE Futures Europe exchange. Futures earlier reached $82.60, the lowest level since November 2010. The more-active December contract climbed 2 percent to close at $85.82. Volume was 36 percent higher than the 100-day average.
The European benchmark crude closed at a $1.77 premium to WTI, down from $2 yesterday.
The 14-day relative strength index for Brent was 17.1124 today and has been below 30 since Sept. 30, according to data compiled by Bloomberg. An RSI below 30 typically signals a market is oversold. The RSI for WTI stood at 26.5533.
‘‘The market is exhausted after a tremendous decline,’’ Tom Finlon, Jupiter, Florida-based director of Energy Analytics Group LLC, said by phone. ‘‘We’re not moving on fundamentals at the moment. This is a probably a brief technical recovery.’’
Gasoline supplies dropped 4 million barrels to 205.7 million last week, an Energy Information Administration report showed today. Stockpiles were projected to have fallen by 1.7 million barrels, according to the median of 11 analyst responses in the Bloomberg survey.
Consumption of the motor fuel rose 1 percent to 8.78 million barrels a day averaged over the last four weeks, EIA data show.
‘‘The gasoline draw is putting the brakes on the market for the moment,’’ Bob Yawger, director of the futures division at Mizuho Securities USA Inc. in New York, said by phone. ‘‘That was a bigger than expected decline in supply and demand over the last four weeks is up strongly.’’
November gasoline futures surged 6.22 cents, or 2.9 percent, to close at $2.2109 a gallon on the Nymex. It was the biggest increase since Sept. 3. Futures touched $2.1347 before the report’s release at 11 a.m. in Washington, the lowest intraday level since Nov. 24, 2010.
Regular gasoline at U.S. pumps fell to the lowest level since February 2011. The average retail price fell 1.4 cents to $3.163 a gallon yesterday, according to Heathrow, Florida-based AAA, the nation’s biggest motoring group.
Stockpiles of distillate fuel, a category that includes diesel and heating oil, dropped 1.52 million barrels to 124.6 million last week, according to the report from the Energy Department’s statistical arm.
Ultra low sulfur diesel for November delivery rose 1.17 cents, or 0.5 percent, to settle at $2.4703 a gallon. It touched $2.5035 during the session, the lowest intraday price since Jan. 10, 2011.
Crude stockpiles rose 8.92 million barrels to 370.6 million in the week ended Oct. 10, according to the EIA. It was the biggest gain in six months. Crude output rose 0.9 percent to 8.95 million barrels a day, the most since June 1985. The combination of horizontal drilling and hydraulic fracturing, or fracking, has unlocked supplies from shale formations in the central U.S.
U.S. refineries operated at 88.1 percent of their capacity last week, down 1.2 percentage points from the previous week and the lowest level since June.
‘‘The huge decline in refinery operating rates is an explanation for both the big declines we saw in product stocks and the build in crude,” Finlon said.
Oil has slipped into a bear market as shale supplies boost U.S. output to the highest level in almost 30 years amid signs of weakening global demand. The largest Organization of Petroleum Exporting Countries producers are responding by cutting prices, sparking speculation that they will compete for market share rather than reduce supply.
Crude’s collapse is just about over, according to some of the world’s largest banks. Crude will trade above $80 a barrel, Bank of America Corp. and BNP Paribas SA predict, while Commerzbank AG sees that level as a possible low for Brent. They’re in part counting on OPEC to reduce output, possibly as soon as next month, to compensate for shrinking demand.
OPEC, which supplies about 40 percent of the world’s crude, is increasing production even as demand growth falters. The group pumped 30.935 million barrels a day in September, the most since August 2013, according to a Bloomberg survey. The gain was led by Libya, where output climbed by 280,000 barrels a day to 780,000, the fifth straight increase.
Oil ministers from Kuwait and Algeria have dismissed possible output cuts as the market’s slump prompted Venezuela last week to call for an emergency OPEC meeting. The group is scheduled to gather on Nov. 27 in Vienna.
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