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Oil prices rise but oversupply concerns cap gains

Published 03/02/2016, 13:47
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Investing.com - Oil futures rose on Wednesday after spending most of the session in negative territory as U.S. crude stocks last week surged to more than half-a-billion barrels, adding to fears over a massive supply overhang.

Brent for April delivery was up 1.59% at $33.24 a barrel as of 11.52 GMT, after settling down 4.4% on Tuesday.

U.S. crude, also known as West Texas Intermediate, rose 1.59% to $30.36, after ending the previous session down 5.5%.

Oil prices have been hard hit by fears that a huge oversupply in crude is coinciding with a global economic slowdown, especially in China.

U.S. crude stocks rose by 3.8 million barrels to 500.4 million last week, data from industry group, the American Petroleum Institute, showed on Tuesday.

Weekly inventory data from the U.S. government's Energy Information Agency is due later Wednesday, with the consensus forecast for a gain of 4.8 million barrels.

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