Mubasher: Oil prices on Thursday traded near a four-month high, as jitters over a slowdown in global economy weighed on market confidence.

By 7:42 am GMT, US Nymex crude futures fell 0.18% to $60.12 per barrel (pb) after hitting $60.19 pb their highest since 12 November, while international benchmark Brent futures ticked up having traded at $68.57 pb, the highest since 13 November.

The declines came as worries over global economic growth emerged after the US Federal Reserve shed lights on a sluggish economy.

Nevertheless, markets were supported by an agreement between the Organization of Petroleum Exporting Countries (OPEC) and non-affiliated producers, including Russia, to curb crude supply. Moreover, declines were capped as data showed that the US supplies grew tighter.

US crude inventories last week dropped by 9.6 million barrels, the biggest drop since July 2018, helped by strong export and refining demand, the US Energy Information Administration (EIA) said on Wednesday.

Gasoline inventories fell 4.6 million barrels, while distillate stockpiles dropped 4.1 million barrels.

“Oil markets appear convinced that the continued effects of the Saudi Arabia oil production cuts and falling exports to the U.S. will continue to outweigh the concerns of rising US production,” OANDA  senior market analyst Alfonso Esparza told Thomson Reuters.