Oil prices regain some ground, but oversupply weighs

LONDON (Reuters) - Oil prices regained some ground on Thursday, after steep losses in the previous session, as leading Gulf oil producers signalled a likely extension of OPEC-led supply cuts beyond the middle of the year.

Brent crude futures were at $53.45 per barrel at 1117 GMT, up 52 cents from their last close.

U.S. crude futures were up 45 cents at $50.89 a barrel.

OPEC members Saudi Arabia and Kuwait signalled that an effort by the Organization of the Petroleum Exporting Countries and other producers, including Russia, to cut oil output was likely to be extended beyond June.

But bloated inventories weighed. Despite a drop in U.S. crude stocks last week, an unexpected 1.5-million-barrel build in gasoline stocks drove prices more than 3.5 percent lower on Wednesday.

 

U.S. crude oil production rose to 9.25 million barrels per day, official data showed, up almost 10 percent since mid-2016.

"The rebalancing in U.S. crude stocks may have got under way, but concerns of further gasoline builds are rife even as the U.S. summer driving season shifts up a gear," said Stephen Brennock, an analyst with PVM Oil Associates.

"With questions hanging over U.S. gasoline demand, any further product builds will act as a brake on the oil price recovery."

Global fuel stocks are well above the five-year average, and Saudi Energy Minister Khalid al-Falih was quoted on Thursday as saying inventories remained elevated in part because traders were selling supplies out of tanker storage.

In China, signs emerged that refiners were using record crude imports to produce more fuel such as gasoline and diesel than the country can absorb.

China's March gasoline output rose 2.5 percent year-on-year to 11.24 million tonnes, the highest level since at least April 2014, China's National Bureau of Statistics said, adding fuel into an Asian market that is already well supplied.

 

Shoot

Trending News

Byju’s acquires US-based Osmo for $120 million

Personal care brand Arata Zero Chemicals raises Rs 3.5 crore in seed capital

Etail may lose Rs 40,000 crore, retail to get a 3rd of it

Amazon food biz to log off if new rules remain on menu

Changes to FDI policy unclear, don’t help the cause of startups: Lenskart's Peyush Bansal

Slowdown or not, we are aggressive on US: TCS CEO Rajesh Gopinathan

SpaceX to layoff 10% of workforce

Amazon Pay gets another Rs 300 crore from parent entity

Steadview Capital invests $74M in Ola valuing it at around $6B

Byju’s ups revenue to Rs 490 cr in FY 18, losses drop by half

A Rs 120-cr WhatsApp message to fight fake news

OYO bulks up international leadership with key hires

For Matrix Partners, transaction-based startups mean business

Amazon joins global companies such as Google, WhatsApp and Truecaller that have put their bets on the UPI business in partnership with banks.

Uber looks to double its engineering headcount in India

SoftBank to invest additional $2B in WeWork: Sources

Snapdeal claims to have added 50,000 sellers in last 12 months

Agritech startups Sabziwala and LivLush merge their business under new entity Kamatan

Avail Finance lands $17.2M from Matrix Partners & Ola, Freecharge and Flipkart founders

RBI suggests tax sops, self-regulation to build fintech space

Swiggy hires new CEO for its Access Service, gets new CFO

Logistics company Delhivery registers 44% increase in FY17 revenues

WeWork to acquire one of the oldest social networks, Meetup

Qualcomm rejects Broadcom's $103 billion offer

EasyRewardz gets $2 million Series-A funding

'Anemic' iPhone 8 demand drags Apple shares lower

Lending platform Lenden Club gets Rs 3.5cr in Equity Investment

On festive sales, Flipkart says 65% clients from Tier-II cities