Oil Snaps 4-Day Losing Streak as Crude Producers Cut Spending

Oil snapped a four-day losing streak, rebounding from the lowest close in almost three weeks as crude producers reduced spending plans.

Futures gained as much as 2.5 percent in New York after slumping 13 percent in the previous four sessions, the biggest four-day slide since November 2014. Explorer Anadarko Petroleum Corp. slashed its dividend joining a parade of drillers cutting investor payments and spending as they seek to preserve cash. The CBOE Crude Oil Volatility Index, which measures expectations of price swings, rose to the highest since 2009 on Tuesday.

Oil is still down about 23 percent this year on speculation a global glut will persist amid the outlook for increased exports from Iran after the removal of international sanctions and brimming U.S. crude supplies. 

Stockpiles in the world’s largest consumer rose above 500 million barrels last month to the highest since 1930 and are forecast to increase for a fifth week, according to a Bloomberg survey before government data on Wednesday. Output is down about 4 percent from a June peak.

West Texas Intermediate for March delivery added as much as 71 cents to $28.65 a barrel on the New York Mercantile Exchange and was at $28.53 at 7:46 a.m. London time. The contract fell $1.75 to $27.94 on Tuesday. Total volume traded was about 2 percent above the 100-day average.

Brent for April settlement gained as much as 2.7 percent to $31.14 a barrel on the London-based ICE Futures Europe exchange. The contract lost 7.8 percent to $30.32 on Tuesday, the biggest decline since Sept. 1. The European benchmark crude traded at a 56-cent premium to WTI for April delivery.