Adedapo Adesanya
By Adedapo Adesanya
Major oil prices returned to green side of the arrow on Wednesday, looking to get back some of the losses suffered over the past two trading days which saw them pointing south.
However, worries over demand prospects still remained, with prices holding onto a sizable week-to-date loss.
Brent crude, the global benchmark, rose by 62 cents or 1.06 percent to $59.36 per barrel while the US West Texas Intermediate (WTI) crude gained 48 cents or 0.91 percent to trade at $53.29 per barrel.
Overall, the outlook for oil has continued to weaken due to broader economic uneasiness as the United States and China trade war tensions linger and a Brexit deadline at the end of October is fast approaching.
Analysts have said any agreement that avoids a no-deal Brexit should boost economic growth and oil demand.
Also, signs that OPEC and allied producers will continue to curb supplies in December supported gains in oil prices on Wednesday as OPEC Secretary-General Mohammad Barkindo disclosed on Tuesday that the cartel and its allies would do all it can to sustain oil market stability beyond 2020.
The Organization of the Petroleum Exporting Countries and its allies will meet on December 5 and 6 in Vienna, Austria to review output policy.
Meanwhile, weekly US petroleum supply data is delayed by a day this week because of Monday’s Columbus Day federal holiday in the United States.
The American Petroleum Institute was due to release its report yesterday, but as at the time of this report, it was yet to do so. On Thursday, official data from the Energy Information Administration (EIA) is due for release.
The EIA data are expected to show crude inventories up by 4 million barrels last week.
