Oil rises more than 1% on smaller-than-expected rise in crude stocks

Oil&Gas Materials 5 March 2020 06:36 (UTC +04:00)

Oil prices rose more than 1% on Thursday, recouping losses from the previous day on a smaller-than-expected rise in crude oil inventories in the United States, although the gains were capped by uncertainties over cuts by major oil producers, Trend reports citing Reuters.

Brent crude LCOc1 rose by 78 cents, or 1.5%, to $51.91 per barrel by 0202 GMT, while U.S. West Texas Intermediate (WTI) CLc1 was up by 69 cents, or 1.5%, at $47.47 per barrel.

Volumes were low, however, reflecting that “there is not a lot of confidence in the moves,” said Michael McCarthy, chief market strategist at brokerage CMC Markets in Sydney.

Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries (OPEC), meanwhile, struggled on Wednesday to win support from Russia to join them in additional oil output cuts to prop up prices that have tumbled by a fifth this year because of the coronavirus outbreak.

Saudi Arabia wants extra cuts of 1 million to 1.5 million barrels per day (bpd) for the second quarter, and to keep existing cuts of 2.1 million bpd in place until the end of 2020.