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West Texas Intermediate oil rose from a 17-month low after U.S. crude supplies dropped to the least since January. Brent rebounded from the lowest level in more than two years in London.
Crude stockpiles slipped 1.36 million barrels to 356.6 million, according to an Energy Information Administration report today. Inventories were forecast to rise by 1.5 million barrels, according to a Bloomberg survey of analysts. Prices will probably rebound this quarter as Saudi Arabia cuts output and global demand increases, according to UBS AG and Barclays Plc.
"Prices are up because of these inventory numbers," Bob Yawger, director of the futures division at Mizuho Securities USA Inc. in New York, said by phone. "We're going to probably see futures move to the $93-$94 area. The slide has been stopped for the time being."
WTI for November delivery advanced $1.24, or 1.4 percent, to $92.40 a barrel at 10:58 a.m. on the New York Mercantile Exchange. Futures traded at $91.94 before the release of the EIA data at 10:30 a.m. in Washington. Futures slid $3.41 to $91.16 yesterday, the biggest one-day decline since November 2012.
Brent for November settlement gained $1.02, or 1.1 percent, to $95.69 a barrel on the London-based ICE Futures Europe exchange. Yesterday's close of $94.67 was the lowest since June 28, 2012. The European benchmark crude traded at a $3.29 premium to WTI.
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