* Concern about Russian airstrikes in Syria boosts Brent
* Larger-than-expected U.S. crude build weighs on WTI
* Trade choppy on monthly, quarterly book balancing
(New throughout, updates prices and market activity to show
U.S. crude turning negative)
By Barani Krishnan
NEW YORK, Sept 30 (Reuters) - Oil prices were mixed in
volatile trade on Wednesday, with global benchmark Brent up on
worries about Russian airstrikes in Syria but U.S. crude down
after data showed a surge in domestic inventories.
Oil prices were broadly boosted in early trade by concern
about a hurricane threatening energy infrastructure on the U.S.
East Coast. Book balancing by traders at the end of the month
and the third quarter also made for choppy trade.
"It's the typical month-end, quarter-end 'window dressing'
phenomenon," Tariq Zahir, a fund manager in oil at Tyche Capital
Advisors in Laurel Hollow, New York, said, noting that similar
action at end-August resulted in an 8 percent price rally.
Warplanes from Russia carried out air strikes against
Islamic State targets in Syria, feeding worries about growing
war in the Middle East. ID:nL5N1203KZ ID:nL1N1201QU
The U.S. National Hurricane Center said it expected
Hurricane Joaquin to reach the Bahamas on Wednesday night. The
storm might move north to threaten the New York Harbor, delivery
point for the U.S. gasoline and ultra low sulfur diesel futures
contracts. ID:nEMN4ZCLIL ID:nL1N1201TE
"High seas along the East Coast have been forecast and that
could affect barges carrying refined products," said David
Thompson, executive vice-president at Washington-based
commodities broker Powerhouse.
Brent LCOc1 was up 15 cents, or 0.3 percent, at $48.38 a
barrel by 1:03 p.m. EDT (1703 GMT). It rose 67 cents at one
point, after falling as much as 44 cents earlier. Brent fell 10
percent for September and 24 percent for the quarter.
U.S. crude CLc1 was down 20 cents at $45.03, surrendering
earlier gains. It was on course to end down 8 percent on the
month and 24 percent on the quarter.
Oil prices slid earlier after U.S. government data showed a
4 million-barrel crude inventory build last week, versus a
forecast by analysts in a Reuters poll for a rise of just about
1 million barrels. EIA/S
Gasoline stockpiles rose more than 3 million barrels,
compared with the poll's forecast for a 40,000-barrel draw, the
data from the Energy Information Administration (EIA) showed.
But the EIA also announced drawdown of 1 million barrels at
the Cushing, Oklahoma, delivery hub for the U.S. crude oil
futures contract. U.S. crude got a brief boost from the Cushing
storage data, which is key to the market's psyche.
Separately, the EIA said U.S. oil output in 2016 was
expected to be at just under 9 million barrels per day. It was
the second time in two months that the EIA slashed its
production forecast by 400,000 bpd. ID:nL1N11F1L6