Oil prices regained some of their gains, Thursday, after falling to their lowest levels in six months in the last session, but investors are still concerned about declining demand and the economic slowdown in the United States and China.
Price movements
By 04:09 GMT, Brent crude futures rose 38 cents, or 0.5 percent, to $74.68 per barrel, and US West Texas crude futures rose by 42 cents, or 0.6 percent, to $69.80 per barrel.
In the last session, the markets were concerned by data that showed that US production remains near record high levels despite the decline in inventories, analysts at ANZ Bank said in a note.
ANZ analysts added that some of the decline was also a result of rising fuel inventories.
The US Energy Information Administration said that gasoline stocks increased by 5.4 million barrels to 223.6 million barrels last week, compared to analysts’ expectations in a Reuters poll of an increase of one million barrels.
Oil prices have fallen by about ten percent since the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as the OPEC+ group, announced voluntary production cuts amounting to 2.2 million barrels per day.
A Reuters survey showed that OPEC oil production fell in November in the first monthly decline since July, as a result of lower shipments from Nigeria and Iraq in addition to the ongoing market-supportive cuts by Saudi Arabia and other members of the OPEC+ alliance.
Russian President Vladimir Putin met with Saudi Crown Prince Mohammed bin Salman to discuss further cooperation in OPEC+ regarding oil prices yesterday, Wednesday, which may enhance market confidence in the impact of production cuts.
Kuwait and Algeria also affirmed their support and commitment to the voluntary cuts.
Chinese customs data showed that crude oil imports in November fell by nine percent compared to last year, as high inventory levels, weak economic indicators, and slowing demand from independent refineries led to a decline in demand.
While total imports fell month-on-month, China's exports grew for the first time in six months in November, suggesting that the manufacturing sector may be starting to benefit from rising global trade flows.
