Oil prices have recovered with the support of falling crude inventories in the US following a fall of more than 1% in the previous session, though high production rates continue to restrict gains.

Brent crude futures LCOc1 were trading at $50.44 per barrel, gaining 17¢, while the US West Texas Intermediate (WTI) crude futures CLc1 were up by 6¢ to $46.84 a barrel, reported Reuters.

Data published by the US Energy Information Administration (EIA) highlighted a fall in commercial crude oil inventory by nearly 13% from its peak in March to settle at 466.5 million barrels.

Rivkin Securities analyst William O'Loughlin was quoted by the news agency as saying: “If inventory declines continue at this pace, stocks will fall back below the five-year average in around two months.”

"Data published by the US Energy Information Administration (EIA) highlighted a fall in commercial crude oil inventory by nearly 13% from its peak in March."

The Organization of the Petroleum Exporting Countries (OPEC) and other major crude producers have agreed to reduce output by 1.8 million barrels per day (bpd) by March next year, as part of a deal that started in January.

However, rising US output has largely undermined the effort to rebalance the market.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Automobile sales are also decelerating after a period of strong demand that was primarily driven by sales of more than two million cars per month in China, which further increased refinery activity during that timeframe.

The demand is anticipated to fall in line with a decline in vehicle sales, due to cars becoming increasingly fuel-efficient and manufacturers opting for alternative fuel sources.