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UPDATE 8-Oil ends down as much as 2 pct on oversupply, gasoline pressure

Published 2015-11-05, 04:31 p/m
© Reuters.  UPDATE 8-Oil ends down as much as 2 pct on oversupply, gasoline pressure
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* U.S. crude down half pct, Brent steady
* Genscape reports Cushing crude build, adding to glut
worries

(New throughout, with settlement prices and additional
comments)
By Barani Krishnan
NEW YORK, Nov 5 (Reuters) - Oil settled down as much as 2
percent on Thurday as an oversupply of crude and weak gasoline
prices extended the previous session's rout.
Crude prices fell nearly 4 percent on Wednesday after the
U.S. government reported a 2.85 million-barrel crude inventory
spike as higher domestic production made up for lower imports
last week. urn:newsml:reuters.com:*:nL1N12Z1SG
In Thursday's session, U.S. crude's West Texas Intermediate
(WTI) futures CLc1 settled down $1.12, or 2.4 percent, at
$45.20 a barrel.
Brent futures LCOc1 closed down 60 cents, or 1.2 percent,
at $48.68. Brent briefly rose during the session, supported by
steady share prices on Wall Street. .N
On the oil products side, gasoline futures RBc1 lost 2
percent, extending Wednesday's 4 percent tumble, amid worries of
peak turnout from U.S. refineries as the autumn maintenance
cycle draws to a close.
Market intelligence firm Genscape added to the bearish
sentiment in crude oil, estimating a build of over 383,000
barrels at the Cushing, Oklahoma delivery point for U.S. crude
futures in the week to Nov. 3, traders who saw the data said.
According to Genscape, Cushing took in nearly 713,000
barrels in the four days to Nov. 3, showing a supply onslaught
late in that week which most likely offset an earlier draw, the
traders said.
"What we're seeing is not a good sign for November," Scott
Shelton, oil broker for ICAP (L:IAP) in Durham, North Carolina, said,
referring to Cushing's worsening fundamentals.
BNP Paribas' global head of commodity strategy Harry
Tchilinguirian said significantly lower U.S. production or much
stronger refinery runs were needed to lift oil from the $40
levels.
Jim Ritterbusch, at market consultancy Ritterbusch &
Associates in Chicago, concurred.
"This remains a difficult trading environment given the
sizable zigs and zags that have left most portions of the energy
complex virtually unchanged from a week ago," Ritterbusch said.
"In any event, a bearish stance is still advised."
Outside of the United States, supply of North Sea crude,
which underpins Brent prices, was also ample, pushing the global
crude benchmark to June lows. CRU/E
Brent's spot contract and oil slated for delivery in a year
LCOc1-LCOc12 was at a discount, or "contango", of nearly $7 a
barrel, the biggest in two months.
In Friday's session, traders will be looking out for U.S.
October jobs data and signs whether the Federal Reserve will
raise interest rates by the year-end. Higher rates will boost
the dollar, weighing on oil and other commodities.

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Chart on Brent oil http://graphics.thomsonreuters.com/US/2/PVB_20150511091840.png
Chart on U.S. oil http://graphics.thomsonreuters.com/US/2/PVB_20150511090055.png
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(Addtional reporting by Amanda Cooper in London Aaron Sheldrick
in Tokyo; Editing by Dale Hudson, Marguerita Choy and Andrew
Hay)

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