The uptick in prices follows a string of dismal reports from leading global oil and gas companies, with most reporting a loss for the third quarter as the downturn drags on.
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Front-month US crude futures were trading at $44.58 per barrel at 0035 GMT (08:35 p.m. EDT), 2 cents below their last close and 12.5 percent lower than their October peak.
USA crude stockpiles climbed for a fourth week through October. 16, the longest run of gains since April, keeping inventories more than 100 million barrels above the five-year seasonal average, EIA data show.
“I’m bearish going into Q1… and what was quite telling is the last rally did not go further than $54 and it was just sold down”, SEB analyst Bjarne Schieldrop said.
December Brent crude dropped 0.19 percent on London’s ICE Futures exchange.
US December crude fell 78 U.S. cents to settle at $US43.20, lowest settlement since August 27. The European benchmark crude closed at a US$3.11 premium to WTI.
“In our views, non-OPEC producers are more likely to hold OPEC responsible for the price weakness of the past year, than to volunteer production cuts to rebalance the market”, said Tim Evans, an energy analyst at Citi Futures.
Ang said the market is also waiting for the results of a meeting of the U.S. central bank s Federal Open Market Committee (FOMC), with focus on the timing of an interest rate increase.
Distillate stockpiles, which include diesel and heating oil, fell 2.6 million barrels to 145 million barrels, versus expectations for a 1.3 million-barrel drop, the EIA data showed.
But the rebound was punctured after the Fed on Wednesday signalled it could raise rates before the end of the year, expressing optimism for the world’s top economy after “solid” consumer spending and business investment.
Crude prices edged lower on Monday, staying under pressure after two straight weeks of losses, on worries that the oversupply in oil products could swell from unseasonably warm weather and the waning maintenance cycle for United States refineries.
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When oil and other commodities such as gold see major price action this usually bodes well in terms of volumes for venues offering futures contracts and brokers offering CFD and spot oil price instruments.
