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By Bloomberg

Oil trimmed its losses in a bear market as trading volatility advanced to the highest in almost two weeks.

Futures climbed as much as 1 percent in New York. West Texas Intermediate has slumped more than 20 percent the past six weeks, meeting the common definition of a bear market. U.S. crude supplies remain almost 100 million barrels above the five- year average after an unexpected increase through July 17, government data showed Wednesday. A measure of price fluctuations rose Thursday to the highest level since July 10.

Oil’s rebound from a six-year low in March has faltered on signs a global surplus will persist. Prices have been swept up in a broad selloff of raw materials, which have fallen to a 13- year low amid concerns about economic growth in China.

“The glut story is persisting,” Jonathan Barratt, the chief investment officer at Ayers Alliance Securities in Sydney, said by phone. “There’s a lot of oil and we should be in a period where we’re seeing declines in stockpiles.”

WTI for September delivery rose as much as 47 cents to $48.92 a barrel in electronic trading on the New York Mercantile Exchange and was at $48.70 at 1:10 p.m. Sydney time. The contract slid 74 cents to $48.45 on Thursday. The volume of all futures traded was about 13 percent below the 100-day average. Prices are heading for a fourth weekly decrease, the longest slump since March.

U.S. Supplies

Brent for September settlement was 23 cents higher at $55.50 a barrel on the London-based ICE Futures Europe exchange. The contract fell 86 cents to $55.27 on Thursday. The European benchmark crude was at a premium of $6.75 to WTI.

U.S. crude stockpiles expanded by 2.47 million barrels to 463.9 million last week, Energy Information Administration data showed, compared with a forecast in a Bloomberg survey for supplies to drop by 2.2 million. The nation is producing near the fastest rate in three decades.

A private gauge of Chinese manufacturing fell in July to the lowest in 15 months, compared with estimates for a gain in a Bloomberg survey. The Bloomberg Commodity Index of 22 raw materials extended losses on Thursday to the lowest close since April 2002 and is set for a third weekly decline.

The Chicago Board Options Exchange Crude Oil Volatility Index closed at 38.46 on Thursday. The gauge of hedging costs on the U.S. Oil Fund, the largest exchange-traded fund tracking WTI futures, is heading for the third weekly gain in four weeks.