SINGAPORE- Oil rebounded from several days of declining values after industry data showed a surprise drop in US crude inventories, offsetting weak economic readings in the United States that have depressed global stock markets.
Brent crude rose 52 cents to $59.41 a barrel, claiming back some of the ground lost over the past three sessions. US West Texas Intermediate crude was at $54.23 a barrel, up 61 cents.
Front-month WTI prices settled down for the sixth straight session on Tuesday, their longest losing streak this year, after US manufacturing activity dived to a 10-year low as US-China trade tensions weighed on exports.
“Brent and WTI have erased those (Tuesday) losses in early trade respectively,” Jeffrey Halley, a senior market analyst at OANDA in Singapore said, although the trading volume is low because of regional holidays.
“We would expect the rallies to quickly run out of steam as we approach $61.00 and $ 55.00 a barrel.”
Oil pared some losses in post-settlement trade on Tuesday after American Petroleum Institute (API) data showed US crude stocks fell last week by 5.9 million barrels, against expectations for an increase of 1.6 million barrels.
The Energy Information Administration’s weekly oil inventories report is due at 10:30 a.m. EDT (1430 GMT) on Wednesday.
Oil prices are now below levels from before the Sept. 14 attacks on Saudi oil facilities as the world’s largest oil exporter has restored its full oil production and capacity. – Reuters