Oil rebounded from several days of the drop in prices after industry report confirmed a surprise drop in U.S. crude inventories and offset weak economic readings in the U.S. that have depressed global stock markets.
Brent crude rose 47 cents, or 0.8%, to $59.36 a barrel by 0657 GMT, claiming again some of the ground lost over the previous 3sessions. West Texas Intermediate crude was at $54.29 a barrel, up 67 cents or 1.3%.
On Tuesday front-month WTI prices settled down for a sixth straight session, their prolonged losing streak in this year after U.S. production activity fell to a 10-year low.
“Brent and WTI have erased those losses in early trade,” Jeffrey Halley, a senior market analyst at OANDA in Singapore stated, although the trading volume was low due to regional holidays.
“We might anticipate the rallies to rapidly run out of steam as we approach $61.00 and $55.00 a barrel,” he stated.
On Tuesday Oil pared some losses in post-settlement trade, after American Petroleum Institute (API) data confirmed U.S. crude stocks fell in the last week by 5.9 million barrels, upon expectations for an increase of 1.6 million barrels.
The Power Data Administration’s weekly oil inventories report is due at 10:30 a.m. EDT (1430 GMT) on Wednesday.
Oil costs are actually under ranges from earlier than the Sept. 14 assaults on Saudi oil services because the world’s largest oil exporter has restored its full oil manufacturing and capability.
“Which means the market is not pricing in any risk premium from additional potential attacks,” stated Howie Lee, an economist at Singapore’s OCBC bank.
Iranian Oil Minister Bijan Zanganeh stated he would be willing to fulfill the oil minister of regional rival Saudi Arabia while in Moscow, however that the Saudis have an issue with the meeting, based on the official IRNA news agency.
“The energy market should be non-political to prevent unilateral and unlawful interference,” Zanganeh stated upon arrival in Moscow for a meeting of the Gas Exporting Countries Forum.
Individually, Ecuador, one of the smallest members of the Organization of the Petroleum Exporting Countries (OPEC), stated that it is going to leave the 14-nation bloc from Jan. 1 because of fiscal issues. After the departure of Qatar, The South American oil producer will be the second to withdraw from OPEC in the last year.