Oil prices stabilized after a two-day decline, as the U.S. Energy Information Administration confirmed the largest increase in U.S. inventories since July.
West Texas Intermediate crude traded below $60 a barrel after losing 2.4% in the previous two sessions, while Brent crude settled below $64 a barrel on Wednesday.
The Energy Information Administration report showed that crude inventories rose by 5.2 million barrels during the week ending October 31, slightly less than the expectations of a prominent industry group, while a decline in petroleum product inventories helped to limit the downward momentum.
Increased global production is putting downward pressure on prices.
US benchmark crude has fallen by about 17% since the start of the year, as production from OPEC+ countries and non-OPEC producers has increased, amid concerns about a potential global supply glut.
The chief executive of commodities trading firm Mercuria said during the ADIPEC conference in Abu Dhabi on Wednesday that the supply glut is building up slowly, but is likely to reach 2 million barrels per day during the next year.
A report from the Energy Information Administration showed that U.S. gasoline inventories fell by about 5 million barrels to their lowest level in three years, despite exports and demand remaining relatively stable.
