REUTERS
World oil prices are recovering on Thursday on news about oil inventories in the U.S., however, the current market glut restrains the growth in prices, Prime reported with reference to trade data.
"As of 7:52 MSK January futures for North Sea Brent blend rose 0.47% to $40.48 per barrel after dropping below $40 per barrel on Wednesday. January futures for Brent WTI were up 0.71% to $37.43 per barrel," according to the statement.
Commercial crude inventories decreased by 3.6 million barrels last week, maintaining a total U.S. commercial crude inventory of 485.9 million barrels, compared with analysts' expectations for an increase of 0.252 million barrels to 489.652 million barrels, U.S. Energy Information Administration (EIA) data showed.
Oil production in the U.S. last week fell by 38,000 bpd, to 9.164 million barrels. At the same time, crude inventories in the country's largest terminal in Cushing increased by 0.4 million barrels to 59.4 million barrels. Petroleum inventories in the U.S. rose by 0.8 million barrels to 217.7 million barrels, compared to analysts' forecasts for an increase of 2.155 million barrels. Distillate inventories were up by 5 million barrels to 149.4 million barrels.
Read alsoOPEC decision to keep output high pulls oil prices close to 2015 lowsThe oil industry, struggling with a supply glut, is hoping lower supplies will help lift prices. However, oil prices may fall more due to oversupply. Since early December, WTI crude oil has lost 11% of its value, according to Reuters. Energy markets still remain vulnerable to further weakness, analysts of ANZ Bank told the agency on Thursday.
Despite an expected fall in U.S. production next year, BMI Research said on Thursday that global output was forecast to rise by 500,000 barrels per day in 2016.
"In particular, we see potential for a temporary undershoot by prices to 2008 financial crisis lows around $36 per barrel for Brent," BMI said on Thursday, Reuters reported.