Oil scrambles off April lows but oversupply still weighs
'International Brent crude oil futures LCOc1 were trading at $43.61 at 21:18 ET, up 14 cents from their previous close. U.S. West Texas Intermediate (WTI) crude CLc1 was at $42.06, up 14 cents, as reported by Reuters.
Brent and WTI hit their lowest since April in the previous session, at $43.27 and $41.68 per barrel, respectively, after U.S. government data revealed a surprise build in crude and gasoline inventories. The build adds to an already huge global refined product glut just as slowing economic growth dents the demand outlook for crude.
'Oil prices were sold off heavily after the weekly EIA report showed a surprise build in crude oil inventory. The 1.7 million barrel increase (to 521.1 million barrels) was against market expectations of a 2.3 million fall. U.S. oil production also increased,' ANZ bank said on Thursday. 'Oil remains weak, with the surprise build in US stocks likely to linger into today's trading,' it added. Oil markets have been dogged by oversupply for the last two years, which pulled down prices by as much as 70% between 2014 and early 2016, when Brent hit the lowest in more than a decade at around $27 per barrel.'