Oil prices rose for a second session despite Saudi Arabia expressing concerns about the demand outlook by cutting its crude prices.
Brent crude rose towards $79 a barrel, and WTI traded near $75, extending a modest recovery after a sell-off on OPEC+ signalling plans to start returning supplies to the market. The price decline pushed both benchmarks into oversold territory on the 14-day RSI.
However, Saudi Aramco cut prices for all oil grades heading to Asia next month - the first cut since February - raising concerns about the strength of demand in the world's biggest crude importing region.
US stocks
Oil has been on a downward trend since early April on a gloomy outlook from top importer China and as geopolitical tensions ease. Supply from rivals of the Organization of the Petroleum Exporting Countries and its allies has also increased, raising concerns about the market’s ability to absorb the extra OPEC+ barrels.
U.S. crude oil inventories rose by 1.23 million barrels last week, government data showed Wednesday, adding to expectations of a drop in prices. Gasoline stocks rose for a second week to their highest since March.
“The market is showing resilience, despite the build in US inventories,” said Charu Chanana, an analyst at Saxo Capital Markets Pte in Singapore. “Traders found technical reasons to buy.”
