Oil prices decline on U.S. inventory surge

Oil prices declined on Wednesday as the U.S. reported a 7.7-percent increase of crude oil inventories.

The U.S. crude oil inventories (excluding those in the Strategic Petroleum Reserve) rose 5.3 million barrels last week to 490.3 million, up 7.7 percent year-on-year, according to the U.S. Energy Information Administration on Wednesday.

Meanwhile, media reports said Wednesday that Russian Energy Minister Alexander Novak expressed the country's willingness to support The Organization of Petroleum Exporting Countries (OPEC)'s output freeze deal. Reports also hinted on possible meetings between Russia and Saudi Arabia.

Analysts said oil prices have been volatile as investors weigh hopes for an output freeze deal against U.S. inventories surge. Such price volatility will increase as the scheduled OPEC meeting approaches.

OPEC reached a preliminary agreement on Sept. 28 to curb oil production for the first time after the global financial crisis in 2008, in an effort to reduce a crude oil glut that has depressed oil prices for more than two years. Production levels for each member country will be decided at a meeting to be carried out on Nov. 30 in Vienna, Austria.

The West Texas Intermediate for December Delivery lost 0.24 U.S. dollars to settle at 45.57 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for January delivery erased 0.32 U.S. dollars to close at 46.63 U.S. dollars a barrel on the London ICE Futures Exchange. Enditem