Oil prices climbed closer to the breakeven in morning trade Wednesday as comments from the Russian energy minister offset bearish U.S. crude stockpile data.
Prices for petroleum dropped more than 1% on Wednesday, returning some of the gains made in one of the year's biggest rallies a day earlier, after weekly U.S. crude stocks grew beyond expectations and a strong U.S. dollar weighed on commodities.
But almost immediately after extending losses on the stockpile data, crude staged a rally as Russia's energy minister said he sees big chances for the Organization of the Petroleum Exporting Countries to agree to limit oil production.
Global benchmark Brent crude was down eight cents at $46.87 U.S. a barrel late Wednesday morning EST. It closed Tuesday 5.7% higher on news that OPEC members would renew efforts to limit production.
U.S. crude fell one cent to $45.80 U.S. a barrel, after settling about 5.8% higher in the previous session.
Data from the U.S Energy Information Administration showed weekly U.S. crude oil stocks surged by 5.3 million barrels last week, exceeding analyst expectations of a 1.5-million-barrel rise.
In a bullish signal for the oil market, the International Energy Agency (IEA) said on Wednesday oil consumption will peak no sooner than 2040 despite the Paris climate deal taking effect, an agreement which intends to wean the world off fossil fuels by the end of the century.
