Investors Focus on US Inventories Data After Oil Rises from 1 Week Low
On Thursday, US oil rose from its 1 week low and investors soon shifted their focus on US inventories data from the upcoming government.
There has been turmoil going on in oil markets with expectations that oversupply will get curbed by cuts in the output announced by Opec and other as well as chances of a rebound in the United States shale production.
The Brent crude witnessed a rise of 0.95% or 51 cents to $54.43/barrel after a 2.8% close down in the last session.
OptionsXpress market analyst, Ben Le Brun stated that there are a few bargain hunters who are quite happy to pick up oil at bottom range.
The market is awaiting EIA (US Energy Information Administration) inventory data at 1600 GMT which was delayed because of Monday being a US public holiday. Also, API (American Petroleum Institute) data showed that US crude stocks dropped by 5.04 million barrels in the second week of January.
Opec also stated that the producer cuts decided upon last year should assist in stabilizing the oil market this year. However, Opec also stated that there are chances of a bounce back in US output in the midst of higher oil prices.
ANZ stated in a note that the International Energy Agency (IEA) is expecting higher oil prices which may trigger notable rise in US shell output. But, ANZ is also of the opinion that the global oil market will witness a considerable deficit in 2017 first half.
