Oil is recovering from its lowest level this year

Journal May 4, 2017 Add comment 61 visits

Baghdad - Agencies

Oil prices recovered yesterday from their lowest levels this year, after initial data showed a larger-than-expected decline in US inventories, as optimism revived as global oil supplies tumbled. Global Brent crude rose 35 cents to $ 50.81 a barrel.

Brent crude futures closed at their lowest level since Nov. 30 when the Organization of the Petroleum Exporting Countries decided to cut production.

WTI rose 28 cents to $ 47.94 a barrel, after falling 2.4 percent on Monday on concerns about a decline in OPEC's commitment to a cut production agreement. US Petroleum Institute data showed late on Tuesday that US crude inventories fell 4.2 million barrels last week, almost double the decline analysts had expected.

"Russia cut production by 300,000 barrels per day on May 1 compared to October last year," the US Department of Energy said. "It has cut output more than required in an agreement between OPEC and other producers.

As global oil stocks continue to grow, investors now focus on whether OPEC and independent producers will agree to extend production cuts to the second half of the year.