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Oil futures inch up but oversupply fears limit gains

Published 05/11/2015, 09:10
Updated 05/11/2015, 09:12
© Reuters.  Oversupply fears continue to weigh on oil prices
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Investing.com - Oil prices inched up on Thursday, but gains were limited as oversupply concerns remained a factor for oil markets.

Crude oil for delivery in December on the New York Mercantile Exchange tacked on 21 cents, or 0.45%, to trade at $46.53 a barrel during European morning hours.

A day earlier, Nymex oil prices tumbled $1.58, or 3.3%, after data showed that oil supplies in the U.S. rose broadly in line with market expectations last week.

The U.S. Energy Information Administration said crude oil inventories increased by 2.847 million barrels last week. Market analysts' expected a crude-stock rise of 2.787 million barrels.

Total U.S. crude oil inventories stood at 482.8 million barrels as of last week, remaining near levels not seen for this time of year in at least the last 80 years.

The report also showed that gasoline inventories decreased by 3.3 million barrels, compared to expectations for a decline of 1.0 million barrels, while distillate stockpiles fell by 1.3 million barrels.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for December delivery rose 34 cents, or 0.7%, to trade at $48.92 a barrel. On Wednesday, Brent prices lost $1.96, or 3.88%.

The oil market has been volatile in recent months amid uncertainty about how quickly the global glut of crude is set to shrink.

Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the Organization of Petroleum Exporting Countries last year not to cut production.

Meanwhile, the spread between the Brent and the WTI crude contracts stood at $2.39 a barrel, compared to $2.26 by close of trade on Wednesday.

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