US crude futures edged higher on Thursday after slipping 2.3 percent a day earlier on a larger-than-expected build in US crude inventories. A weaker dollar, record gold prices, copper near 14-month peaks and a 3.4 percent rally in Japan's main equity market did little to counter worries about rising inventories and slow demand. "Oil is in a range.
It will stay there for the rest of the year, and probably through the first quarter of 2010, unless we see something geopolitical come from left field - maybe from Iran," said Peter McGuire, managing director of CWA Global Markets. Oil has traded in a $14-range this quarter, which narrowed to $9 last month, bounded by a low of $72.39 when panic over Dubai's debt situation sent commodities reeling for a few hours, and $81.06 as the upper threshold.
NYMEX crude for January delivery rose 24 cents to $76.84 a barrel by 0538 GMT, after settling down $1.77 at $76.60 on Wednesday. Brent crude rose 48 cents to $78.36 per barrel. Wednesday's losses, which stemmed a two-day advance, came after US government data showed crude stocks rose 2.1 million barrels last week, topping the forecast for a 400,000 barrel rise in a Reuters poll.
Gasoline futures slumped on Wednesday as the data from the US Energy Information Administration showed gasoline stocks increased much more than forecast. Distillate stocks fell 1.2 million barrels, against the forecast for a 300,000-barrel drop. Adding to the concerns over rising supply, Russia set a fourth consecutive monthly record for crude oil output in November to retain its position as the world's largest producer.
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