Oil prices re­bound from slump fol­low­ing US stock­pile surge, Saudi out­put growth

The China Post - - MARKETS -

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.

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