Oil rebounds from near 2017 lows
03 May 2017 - 22:19
London: Oil prices rebounded from near 2017 lows on Wednesday after preliminary data showed a much larger-than-expected fall in US crude stocks, reviving bullish sentiment about easing oversupply.
Benchmark Brent crude was up 21 cents at $50.67 a barrel at 1346 GMT. On Tuesday the futures had settled at their lowest since November 30, when the Organization of the Petroleum Exporting Countries decided to cut oil supply. US West Texas Intermediate (WTI) crude traded at $47.81 a barrel, up 15 cents. WTI had slid 2.4 percent on Tuesday.
Data from the American Petroleum Institute (API) assessing closely watched US oil inventories showed late on Tuesday that crude stocks had fallen last week by 4.2 million barrels.
"The API statistics are helping the market recover, but the underlying sentiment is still bearish," said Tamas Varga, analyst at London brokerage PVM Oil Associates.
The US government releases official inventory data from the Energy Information Administration yesterday. The data will also provide an update on growth in US oil production, a key factor that has kept a lid on price gains driven by output cuts elsewhere.
"(US) production growth has slowed during the past couple of weeks. If continued today it may also add some glimmer of hope for the bulls, who increasingly have been losing patience," said Ole Hansen, head of commodities strategy at Saxo Bank.