TOKYO/BEIJING :Oil prices rose on Thursday as oversupply concerns eased, after closing at two-week lows in the prior session on weaker demand.
Brent crude futures were up 24 cents, or 0.38%, to $63.76 a barrel at 0753 GMT, while US West Texas Intermediate futures rose 25 cents, or 0.42%, to $59.85.
Global oil prices fell for a third straight month in October on fears of oversupply as the Organization of the Petroleum Exporting Countries (OPEC) and its allies increased output while production from non-OPEC producers continued to grow.
After US and British sanctions on Russia's biggest oil companies two weeks ago tempered the market's aggressive bearish stance, there was a shift in oil price momentum at the end of October, Haitong Securities said.
OPEC+’s plan to pause further production increases in the first quarter of next year also partly eased worries about oversupply, according to the brokerage.
However, concern over weaker demand remains. Year-to-date through November 4, global oil demand has risen by 850,000 barrels per day, below the 900,000 bpd growth projected earlier by J.P. Morgan, the bank said in a client note.
“High-frequency indicators suggest that US oil consumption remains subdued,” the note added, citing weak travel activity and lower container shipments.
In the previous session, oil prices fell after the US Energy Information Administration reported that US crude stocks rose by 5.2 million barrels to 421.2 million barrels last week, compared with expectations for a 603,000-barrel rise.
“We think that downward pressure on oil prices will prevail, supporting our below-consensus forecast of $60 per barrel by end-2025 and $50 per barrel by end-2026,” Capital Economics said in a note.
Saudi Arabia, the world’s top oil exporter, sharply reduced the prices of its crude for Asian buyers in December, responding to a well-supplied market as OPEC+ producers ramp up production.— Reuters
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