Oil prices rebound from slump following US stockpile surge, Saudi output growth
Oil prices rebounded Thursday on bargain-hunting after a surge in U.S. crude stockpiles and record output in Saudi Arabia sparked a sell-off in the previous session, analysts said.
U.S. benchmark West Texas In- termediate (WTI) for delivery in May advanced US$1.33 from Wednesday’s close to US$51.75 a barrel.
Brent North Sea crude for May rallied US$1.66 to stand at US$57.20 nearing midday in London.
Shailaja Nair, of energy informa- tion provider Platts, said Thursday’s price rebound was “due to bargainhunting” traders, who pounced on oil at depressed prices.
Analysts however expect prices to remain under pressure owing to a global oversupply.
On Wednesday, WTI sank US$ 3.56 while Brent tumbled US$3.55 after the U.S. Department of Energy’s weekly commercial inventories report showed an increase of nearly 11 million barrels of crude to a fresh record high of 482.4 mil- lion barrels.
Also hitting prices was the announcement by Saudi Oil Minister Ali al-Naimi that Saudi production hit a record high 10.3 million barrels a day in March, despite the global crude glut and sagging prices.