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Oil prices reversed its losses by a 2% gain globally backed by data showing a decline in the U.S crude oil inventories last week.
Brent oil future extended gain to trade up to 0.2% at $43.39 a barrel. U.S. crude oil futures stood at 8 cents higher with prices at $41.12 per barrel. Both contracts rose more than 4% on Wednesday.
The U.S crude inventories by the American Petroleum Institute shows that U.S crude declined by 5.4 million barrels in the week ended October 9. The details of the report are entirely a backwards trend from analysts predictions toward the week. This helped drive the gain in global oil prices.
After the crude selloff stage, prices are still recovering. However, there are still concerns that a resurgence of the pandemic in major economies may derail the fragile recovery in oil demand.
Brent Crude Oil Price Rises Even As Global Oil Supplies Rise
The organisations had set a compensation period for countries like Nigeria, United Emirates and Iraq to stop overproduction from September to the end of December.
In August, the global oil outlook improved with a 102% compliance level on oil production cuts agreements from the Organization of the Petroleum Exporting Countries (OPEC) and OPEC+ members. The Joint Ministerial Monitoring Committee (JMMC) welcomed the development.
If the demand for crude oil further slows down, this could mean that oil prices could go down in the weeks to come.
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