Oil prices claw back ground after sharp drop, buoyed by US crude stock dip
SINGAPORE – Oil prices regained some ground on Thursday after steep losses the previous day, with a slight drop in US crude inventories stoking hopes that a push to rein in global oversupply could be gathering at least some momentum.
Brent crude futures were at $53.31 per barrel at 0108 GMT, up 38 cents, or 0.72 percent, from their last close.
US West Texas Intermediate (WTI) crude futures had risen 31 cents, or 0.61 percent, to $50.75 a barrel.
Traders said that the gains came on the back of a reduction in commercial US crude stocks, which fell by 1 million barrels last week to 532.34 million barrels, according to the US Energy Information Administration (EIA). However, that level was still near a record high.
Price increases came after both crude benchmarks fell over 3.5 percent the previous day following a report of surging gasoline inventories as well as another rise in US crude oil production to 9.25 million barrels per day (bpd), up almost 10 percent since mid-2016.
US gasoline stocks posted a counter-seasonal build of 1.5 million barrels, despite heavier refining activity.
“The US has now entered a seasonal period in which stockpiles are reduced during the summer driving season, hence the unexpected miss weighed heavily on prices,” James Wood, investment analyst with Rivkin Securities, said in a note. -Reuters