Reuters: Oil rises after big losses, glut concerns likely to persist
Crude prices rose on Thursday to recoup some of their big losses from the previous session, but gains are likely to be limited by mounting concerns the global glut in oil is not going away soon after two major agencies issued bearish reports, Reuters reported.
Brent crude was up 44 cents at $46.70 a barrel at 0250 GMT (10:50 p.m. EDT). U.S. crude rose 43 cents to $45.18 a barrel, according to Reuters.
A bearish assessment on the oil market from the International Energy Agency (IEA) on Wednesday sent both benchmarks down more than 4% by the close of trading.
The glut in the global oil market is persistent and is putting a lid on crude prices despite strong demand growth and steep declines in non-OPEC production, the IEA said, according to Reuters.
Crude stockpiles in the United States were down less than expected last week, while distillate inventories rose the most since January and gasoline stocks unexpectedly increased,the IEA said, according to the report.
The EIA said crude inventories fell 2.5 million barrels last week, less than the 3 million-barrel drop forecast in a Reuters poll.