Mubasher: Oil prices dropped early on Thursday, pressured by the abiding worries over supply glut and fears of a slowing global economy, even some support came from a surge in the global equity market.
By 2:37 am GTM, Brent crude oil futures edged down 0.15% to $54.39 per barrel (pb) after registering a 8% growth in the previous session, while US West Texas Intermediate (WTI) crude futures dipped 0.19% to $46.13 pb, wiping out a 8.7% gain in the prior session.
Oil prices were still low in spite of gains registered on the session before, Shim Hye-jin, a commodity analyst at Samsung Securities in Seoul, told Reuters.
“But if the Organization of Petroleum Exporting Countries’(OPEC) cuts are fulfilled, WTI prices are expected to rise to $50-60 a barrel, while Brent is expected to go up to between $58-70 a barrel next year,” he added.
However, US crude inventories are expected to decline 2.7 million barrels in the week ended 21 December, marking their fourth straight week fall, according to a poll conducted by Reuters on Wednesday.
In early December, the cartel along with Russia and its allies reached a deal on significantly curtailing oil production, clearing a global supply glut.
OPEC along with its allied producers would reduce crude output by a collective 1.2 million barrels per day (bpd), starting next year.
Inventory data of the American Petroleum Institute (API) is due today, while the US Energy Information Administration (EIA) is scheduled to announce its report on Friday, 28 December.
By 7:07 am GMT, US Nymex crude futures shed 0.35% to $46.06 pb, while international benchmark Brent futures fell 0.35% to $54.28 pb.