Hong Kong/London: Oil steadied near $48 (Dh176) a barrel in New York after a further reduction in US crude inventories was tempered by gains in the nation’s production.

Futures were little changed after advancing for a second session on Wednesday. Crude stockpiles slid by 3.33 million barrels to the lowest level since January 2016, while gasoline supplies fell for the first time in three weeks, according to the Energy Information Administration. Oil production expanded further to the highest level since July 2015.

Oil in New York has fluctuated below $50 a barrel this month as investors weigh rising global output against supply cuts by members of the Organisation of Petroleum Exporting Countries and its allies. Investors have been watching US stockpile numbers closely, while Opec’s efforts to drain a glut have been hindered by increasing production from shale formations and countries like Libya.

“The most recent EIA stock update gave something for both bulls and bears to cheer about,” said Stephen Brennock, an analyst at PVM Oil Associates Ltd in London. “As has become the norm, the fly in the ointment for bulls is the march higher in US crude production.”

Brent for October settlement

West Texas Intermediate for October delivery was at $48.25 a barrel on the New York Mercantile Exchange, down 16 cents, at 10:12am in London. Total volume traded was about 33 per cent below the 100-day average. Prices gained 58 cents, or 1.2 per cent, to $48.41 on Wednesday.

Brent for October settlement fell 17 cents to $52.40 a barrel on the London-based ICE Futures Europe exchange. Prices climbed 70 cents, or 1.4 per cent, to $52.57 on Wednesday. The global benchmark crude traded at a premium of $4.18 to WTI.

US gasoline inventories dropped by 1.22 million barrels to 229.9 million last week, the EIA reported Wednesday. Crude output increased by 26,000 barrels a day to 9.53 million, expanding for a second week.

Libya’s Sharara field, the nation’s biggest and shut since Saturday, is yet to resume pumping crude despite the reopening of a pipeline linking it to the coast, according to two people familiar with matter.