Oil eased towards $63 a barrel today, after sliding almost 6 per cent the day before on data showing a jump in US crude stocks, while the market kept an eye on measures by China to manage credit growth.
Adding to uncertainties in the oil market was news the US Commodities Futures Trading Commission (CFTC) was considering implementing position limits for some commodity futures in the face of the wide price swings that have raised worries over speculation.
Crude oil inventories in the world's top consumer jumped by an unexpected 5.1 million barrels to 347.8 million barrels in the week to July 24th, data from the Energy Information Administration (EIA) showed, as imports hit a six-month high and refiners cut processing rates.
US crude shed 18 cents to $63.17 a barrel, after plunging 5.77 per cent yesterday, the biggest daily percentage drop since April 20th. London Brent gained 17 cents to $66.70 a barrel.
Distillate stocks rose to the highest level in nearly 25 years, while gasoline stockpiles fell, the EIA said. Over the past four weeks, US fuel consumption dropped 4.1 per cent against year-ago levels, led by a 10.7 per cent drop in distillates demand.