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WTI oil futures rebound after tumbling on supply data

Published 24/09/2015, 10:11
© Reuters.  Nymex oil pushes higher after tumbling on weekly supply data
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Investing.com - West Texas Intermediate oil futures pushed higher on Thursday, one day after losing more than 4% following the release of disappointing weekly supply data from the U.S.

Crude oil for delivery in November on the New York Mercantile Exchange tacked on 48 cents, or 1.08%, to trade at $44.96 a barrel during European morning hours.

A day earlier, Nymex oil prices plunged $1.88, or 4.06%, following a larger than expected buildup in U.S. gasoline stocks.

According to the U.S. Energy Information Administration, gasoline inventories increased by 1.37 million barrels last week, above expectations for a gain of 0.82 million.

The build in motor fuel stocks raised concerns about high product inventories in the face of weak seasonal demand.

Weekly supply data also showed that crude oil inventories fell by 1.93 million barrels last week. Market analysts' expected a crude-stock drop of 0.54 million barrels.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for November delivery added 39 cents, or 0.82%, to trade at $48.14 a barrel during morning hours in London.

On Wednesday, Brent futures sank $1.33, or 2.71%, as ongoing worries over the health of the global economy fueled concerns that a global supply glut may stick around for longer than anticipated.

Private sector data released Wednesday showed that manufacturing activity in China contracted at the fastest pace since the global financial crisis, fueling fears over slackening demand for the industrial metal.

The preliminary reading of the Caixin manufacturing purchasing managers’ index fell to 47.0 in September from 47.3 a month earlier. It was the lowest reading since March 2009.

The gloomy figure added to concerns over the health of the world's second largest economy.

Crude oil prices have lost nearly 60% since last summer as ongoing concerns over a glut in world markets drove down prices.

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 $3.18 a barrel, compared to $3.27 by close of trade on Wednesday.

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