Stockpiles rise 14.4 million barrels as imports surge: EIA OPEC ‘jawboning’ contributing to market instability: Barclays Share on Facebook Share on Twitter Crude steadied after a record surge in U.S. inventories sent prices plunging on Wednesday, capping the longest losing streak in two months. West Texas Intermediate oil was little changed after tumbling 2.9 percent yesterday following a report from the Energy Information Administration that stockpiles increased by 14.4 million barrels last week. OPEC members who are claiming exemption from an agreement to limit supplies boosted their production in October, according to a Bloomberg survey. A measure of oil volatility is near the highest level in more than a month as investors in broader financial markets stay cautious amid a tightening White House race. "The combination of the large inventory build and reports of increasing OPEC production knocked the blocks from under the bulls," said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. "We overshot yesterday and are catching our breath. We won’t see a strong move in prices until there’s important news on supply or demand, or the election is over." Oil has retreated from near $50 a barrel, triggered by the failure of the Organization of Petroleum Exporting Countries to agree on country quotas last week as part of a deal to limit output. While Goldman Sachs Group Inc. sees little probability of an agreement at OPEC’s Nov. 30 meeting, Bank of America Corp. is confident of an accord. OPEC’s “jawboning� is contributing to instability in the market, according to Barclays Plc. West Texas Intermediate for December delivery climbed 16 cents to $45.50 a barrel at 9:13 a.m. on the New York Mercantile Exchange. The contract fell $1.33 to $45.34 on Wednesday, the lowest close since Sept. 27. Total volume traded was about 26 percent below the 100-day average. U.S. Stockpiles Brent for January settlement rose 27 cents to $47.13 a barrel on the London-based ICE Futures Europe exchange. Prices fell 2.7 percent to $46.86 a barrel on Wednesday, also the lowest close since Sept. 27. The global benchmark crude traded at a $1.02 premium to January WTI. For a story on rising U.S. crude imports, click here. U.S. crude stockpiles increased by 14.4 million barrels last week as imports surged the most in almost 20 years, according to an Energy Information Administration report Wednesday. Crude output rose for a third week. OPEC pumped a record 34.02 million barrels a day in October, according to a Bloomberg News survey of analysts, oil companies and ship-tracking data. The gain was lead by Libya, Nigeria and Iran, which are exempt from an OPEC deal to cut supply, pumped an additional 400,000 barrels a day in October, the survey showed. Iraq, also demanding an exemption, added 50,000 barrels a day. Oil-market news: State-owned Saudi Arabian Oil Co., known as Saudi Aramco, increased its official pricing for Arab Light crude to Asia by 90 cents a barrel, to a premium of 45 cents over the regional benchmark, according to people familiar with the matter Royal Dutch Shell Plc predicts demand for oil could peak in as little as five years, a rare statement in an industry that commonly forecasts decades of growth. International Energy Agency Executive Director Fatih Birol said he doesn’t buy the argument that electric cars will cause oil demand to peak.

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