A Wednesday report by the U.S. Energy Department indicated stockpiles of crude oil in the nation last week increased by 2.3 million barrels to 354 million. That helped push down oil futures 0.9 percent on Thursday alone.
"Yesterday's DOE report suggested that fundamentals are weak," analyst Carsten Fritsch of Commerzbank in Frankfurt told Bloomberg. "Weak stock markets and a strengthening dollar also suggest that the oil price has got to go lower. But supply risks in the form of tropical storm Don are preventing this for now."
At 10:18 a.m. on Thursday, crude oil futures increased 0.58 percent, a 68 cent rise to $118.11 per barrel.
Reuters reports Tropical Storm Don was driving toward the northwest through the Gulf of Mexico and is set to make landfall on the Texas coast on Friday. The coast set up a tropical storm watch for the fourth system of the Atlantic hurricane season.
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