Oil rebounded to more than $66 a barrel on Friday, after a drop of more than 4% to its lowest in eight weeks, reported Reuters.
US Government data showed a large build in US crude oil stockpiles earlier in the week and oil prices are on track to snap two straight weeks of gains and post a drop of nearly 8% this week, making their worst weekly performance in about two months.
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US crude for November delivery was up $0.18 at $66.05 a barrel by 3am EDT, after settling at $3.08 on Thursday.
London Brent crude gained $0.29 to $65.44.
Analysts said that oil’s gain on Friday was largely a technical rebound, with demand and supply fundamentals still weak and showing little sign of improvement, according to Reuters.
Crude prices tumbled 4.5% on Thursday as traders shrugged off a positive report of a fall in the number of US workers filing for jobless benefits claims.
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By GlobalDataAdditional pressure came from a report that Opec seaborne oil exports, excluding Angola and Ecuador, will rise 160,000 barrels per day in the four weeks leading up to 10 October.
Oil has traded in a wide band of between $65-$75 in the past month and most analysts agree that prices would only break out of the $75 range when the supply glut in the US – where oil stockpiles are about 9% higher than its five-year average levels – starts to ease.
