Oil prices
steadied on Thursday after data showed U.S. crude inventories dropped
and refinery demand was robust, although the global market remained
extremely well supplied.
U.S.
crude inventories fell by 4.3 million barrels last week, according to
the Energy Information Administration (EIA), as refineries boosted
throughput to a record level.
The data suggested demand in the United States, the world's biggest oil consumer, was holding up well and still absorbing fuel at a time of ample global production.
Brent crude for August was unchanged at $57.05 a barrel by 0750 GMT. U.S. light crude, also known as West Texas Intermediate or WTI, was up 10 cents at $51.51.
Daniel Ang of brokerage Phillip Futures said the U.S. crude inventory figures looked bullish for both global oil benchmarks.
"As a result of this, we would believe that both WTI and Brent ... should move upwards today," Ang said.
Oil prices have fallen steadily over the last two months and both crude benchmarks are now down more than 15 percent from their June peaks.
The Organization of the Petroleum Exporting Countries is producing around 2.5 million barrels per day (bpd) more crude than needed at the moment, analysts say, filling inventories worldwide and keeping markets under pressure.
OPEC oil supply may be about to rise as Iran increases output following a deal with six global powers over its nuclear program.
Iran has some of the world's biggest oil reserves. It exported almost 3 million bpd of crude before Western sanctions but has been selling closer to 1 million bpd over the last 2-1/2 years.
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| Pump jacks are seen in the Lost Hills Oil Field, California April 20, 2015. |
The data suggested demand in the United States, the world's biggest oil consumer, was holding up well and still absorbing fuel at a time of ample global production.
Brent crude for August was unchanged at $57.05 a barrel by 0750 GMT. U.S. light crude, also known as West Texas Intermediate or WTI, was up 10 cents at $51.51.
Daniel Ang of brokerage Phillip Futures said the U.S. crude inventory figures looked bullish for both global oil benchmarks.
"As a result of this, we would believe that both WTI and Brent ... should move upwards today," Ang said.
Oil prices have fallen steadily over the last two months and both crude benchmarks are now down more than 15 percent from their June peaks.
The Organization of the Petroleum Exporting Countries is producing around 2.5 million barrels per day (bpd) more crude than needed at the moment, analysts say, filling inventories worldwide and keeping markets under pressure.
OPEC oil supply may be about to rise as Iran increases output following a deal with six global powers over its nuclear program.
Iran has some of the world's biggest oil reserves. It exported almost 3 million bpd of crude before Western sanctions but has been selling closer to 1 million bpd over the last 2-1/2 years.
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