Oil prices have increased for the first time in three days, although the market is experiencing considerable pressure from rising global supply and concerns related to the effect of a slowing economy on the outlook for demand.
Brent crude futures have increased by 49 cents, or 0.7%, to trade at $76.4 per barrel, while US West Texas Intermediate (WTI) crude futures rose by 28 cents, or 0.4%, to reach $66.46, Reuters reported.
Both futures posted losses on the previous day, falling 1.8% and 1.3% respectively.
Since reaching their highest levels in four years in the first week of this month, the crude benchmarks have declined around $10 per barrel and are expected to post their worst monthly performance since July 2016.
Mitsubishi oil risk manager Tony Nunan was quoted by the news agency as saying: “Everyone thought we were going to go into the $90s, but now we are heading for the $60s.”
Oil prices have been affected by global financial market concerns encountered this month following a trade dispute between the US and China.
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Earlier this week, US President Donald Trump stated that he expressed the possibility of clinching ‘a great deal’ with China on trade. However, Trump warned that the US will impose further tariffs worth billions of dollars on Chinese goods if a deal is not reached.
Washington and Beijing have been taking actions against each other, with the former imposing import duties on $250bn worth of Chinese goods, and the latter retaliating with tariffs on US goods worth $110bn.
Meanwhile, the American Petroleum Institute released estimates for the US crude inventories, saying stocks increased 5.7 million barrels for the week ending 26 October.
Data available with Refinitiv Eikon revealed that oil production from the world’s three biggest producers, Russia, the US and Saudi Arabia, reached 33 million barrels per day (bpd) for the first time in September.