Oil goes above $63 after a big fall, but glut worries persist
US crude inventories fall by 1.5-million barrels, easing concerns of a supply glut in the short term, as Trump supports Saudi over Kashoggi
London — Oil bounced above $63 a barrel on Wednesday to claw back some of the previous day’s 6% plunge, lifted by a report of an unexpected decline in US crude inventories. The American Petroleum Institute (API) said on Tuesday that last week US crude inventories fell by 1.5-million barrels, easing concerns for now that a supply glut is building up. “The move yesterday was extremely sharp; after such moves you expect to have some rebound,” said Olivier Jakob, analyst at PetroMatrix. “The API reported a stock draw — it is not a big one, but at least it’s not a 10-million-barrel build.” Brent crude, the global benchmark, was up 92c to $63.45 a barrel at 9.44am GMT and traded as high as $63.67. US crude gained 98c to $54.41. Yet Wednesday’s bounce did little to reverse overall market weakness. Crude fell more than 6% in the previous session and world equities tumbled as investors grew more worried about economic growth prospects. Brent has fallen by more than 25% since reaching a four-...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.