Oil holds losses

MOTOR-fuel inventories rose by 6,78 million barrels last week. WTI January futures hold steady at $56,12 a barrel in New York.

Oil held losses near $56 a barrel after falling the most in two months as U.S. gasoline stockpiles expanded more than expected, offsetting a third weekly decline in crude inventories.

Futures were little changed in New York after tumbling 2,9 percent Wednesday, the biggest daily drop since 6 October. Motor-fuel stockpiles rose by 6,78 million barrels last week for a fourth weekly advance, according to Energy Information Administration data.

That’s more than double the most bearish estimate in a Bloomberg survey. U.S. oil output increased to a record.

“The decline in crude-oil inventories was offset by an even larger increase in product inventories,” said Norbert Ruecker, head of commodity research at Julius Baer Group Ltd. in Zurich.

“We stick to our cautious view and see more price downside than upside.”

Oil has advanced about 18 percent since the start of September and is heading for a second yearly gain as OPEC and its allies extend supply cuts, yet prices have slipped from a two-year high last month.

A sustained run above $60 a barrel would be needed for a fresh surge in U.S. output, JPMorgan Chase & Co. said in a note after talks with shale operators in the Permian basin.

West Texas Intermediate for January delivery was at $56.12 a barrel on the New York Mercantile Exchange, up 16 cents, at 10:07 a.m. London time. Total volume traded was about 10 percent below the 100-day average. Prices slid $1.66 to $55.96 on Wednesday.