Oil turns higher as Wall Street rally offsets inventory rise
By Robert Gibbons
NEW YORK (Reuters) - Oil prices ended nearly 2 percent higher on Wednesday in volatile trade as rallying equities on Wall Street pulled crude up from lows after futures sank on concerns about global oversupply.
U.S. stocks rose more than 1 percent in afternoon trading as technology stocks led a rebound from Tuesday's steep losses and as China's move to again support its financial markets eased investor concerns.
"Looks like risk-on trade with a rising tide lifting all boats," John Kilduff, partner at Again Capital LLC in New York, said.
Oil continued its recent turbulent trajectory on Wednesday following Tuesday's 8 percent slide that ended a 25 percent three-session surge of frenzied short-covering after a drop to 6-1/2-year lows early last week.
Brent October crude rose 94 cents to settle at $50.50 a barrel, having recovered from a $47.74 low. It reached $51 post-settlement.
U.S. October crude rose 84 cents to settle at $46.25, after falling to $43.21 and reaching $46.77.
Also providing lift was a rally in Canadian synthetic crude prices. It traded at a premium to U.S. futures on expectations of a prolonged outage at the Syncrude oil sands project in northern Alberta, trading sources said.
Crude sank earlier in the session after Energy Information Administration (EIA) data showed U.S. crude stockpiles rose 4.7 million barrels to 455.4 million barrels last week after analysts in a Reuters poll had expected stocks to be unchanged. Continued...