Oil futures recouped from its declines last Wednesday’s session, following the figures showing an unexpected downfall in U.S. crude inventories, investors are relieved at the news after several days of losses on concerns that the efforts to cut brimming supply are stagnant.
International benchmark Brent crude was 37 cents lower to $51.73 a barrel. This month, the benchmark lost 8 percent in total. Meanwhile the U.S. West Texas Intermediate (WTI) settled slightly higher by 6 cents to $49.62. WTI fell more than 1 percent on the previous session.
According to Energy Information Administration, commercial crude stockpiles in United States loss about 3.6 million barrels to a sum of 528.7 million barrels in the week over April 21. Crude futures in the prior country didn’t also perform well for the past seven days. Investors are eager with high stockpiles following the landmark deal last week led by major oil producers to reduce production.
The refining capacity utilization was 94.1 percent; it strengthened the gasoline stockpiles by 241 million barrels. Last January, gasoline sales edged lower by 6 percent last 2016. Analysts noted that the demand for gasoline could leave the inventories of fuel higher regardless of the summer driving season, the time when consumption grows.
WTI and Brent were also backed from Saudi Arabia’s Minister Khalid al-Falih. He noted that he was concerned in the meeting between the OPEC and non-OPEC nations to preserve the price of oil.
The Organization of the Petroleum Exporting Countries and major producers planned to reduce production by 1.8 million barrels per day (bpd) in the first half this year. Other producers and Gulf have pointed out that the cuts could be prolonged before this year ends. The extension is scheduled to be discussed this coming May.