Oil prices have risen after sharp losses in the previous three sessions with global equity markets indicating signs of stability.
However, the market is still under pressure due to concerns of oversupply and economic slowdown.
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Global benchmark Brent crude futures recovered 20 cents to settle at $56.46 a barrel, while West Texas Intermediate futures (WTI) climbed 7 cents to trade at $46.31 a barrel, reported Reuters.
Brent traded at $86.74 a barrel on 3 October this year but has lost around 30% of its value in the last three months.
WTI has dropped by around 40% from its latest peak of $76.90 a barrel on 4 October.
Adding to oversupply worries, the American Petroleum Institute said that crude and gasoline stocks in the US soared last week.
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By GlobalDataThe output was also at record levels from key oil-producing countries that include Saudi Arabia, Russia, and the US.
Furthermore, US shale production is expected to increase to more than eight million barrels per day (bpd) by the end of this year.
OANDA Asia-Pacific trading head Stephen Innes was quoted by the news agency as saying: “WTI prices are holding on Wednesday as traders look for some solace in US equity markets as risk sentiment appears to be stabilising. But we are far removed from any bullish flip in investor sentiment.”
Additionally, Libyan state oil company helped oil prices by declaring force majeure at its largest oilfield.
The investors are currently eyeing the outcome of the US Federal Reserve meeting.
