Oil’s rally paused for a second day as oversupply concerns resurfaced after U.S. crude inventories jumped the most since January.
Futures in New York edged lower for a second day after climbing 5.5 percent in the three days through Tuesday. American stockpiles rose by 7.24 millionbarrels last week, according to Energy Information Administration figures, topping analyst and industry estimates. Optimism the U.S. and China are getting closer to a trade agreement likely prevented steeper declines.
The Saudi Arabia-led supply cuts by the Organization of the Petroleum Exporting Countries and its allies have provided the biggest impetus for oil’s 37 percent advance this year. In recent days, OPEC members Iran and Nigeria have voiced support for extending the output reductions beyond the end of June. An apparent stabilization in China’s economy and the trade detente between the two biggest economies are improving the demand outlook.
WTI for May delivery declined 10 cents, or 0.2 percent, to $62.36 a barrel on the New York Mercantile Exchange as of 12:24 p.m. in Singapore after falling as much as 15 cents earlier. The contract closed down 0.2 percent on Wednesday.
Brent for June settlement traded 4 cents lower at $69.27 a barrel on the London-based ICE Futures Europe exchange after advancing as much as 17 cents earlier. The global benchmark crude was at a premium of $6.84 to WTI.
Source : Bloomberg