Oil prices recovered slightly Wednesday from two-month lows, as traders looked ahead to US energy inventory data for indications of demand in the world’s biggest crude consumer.
Price gains however were hobbled by concerns about a global oversupply of oil after the International Monetary Fund (IMF) lowered its growth forecasts for the world economy, traders said.
Around 1145 GMT, Brent North Sea crude for delivery in September was up 11 cents at $46.77 a barrel.
US benchmark West Texas Intermediate (WTI) for the same month rose five cents to $45.50 compared with Tuesday’s close.
Dorian Lucas, analyst at energy consultants Inenco, said trading had “yet to move the market much ahead of today’s release” of stockpiles data from the US Department of Energy.
Analysts added that oil was taking a hit also from renewed strength in the dollar, which makes the commodity more expensive for buyers holding weaker currencies.
US oil prices hit two-month lows Tuesday after the IMF lowered its global growth forecasts, citing the impact of Britain’s vote to leave the European Union.
The IMF said it expects the world economy to expand 3.1 percent this year, lower than it forecast in April. Slower overall growth would likely dampen the expansion of crude oil demand.
WTI on Monday reached $44.65 a barrel — the lowest level since mid-May — as market support weakened for a second day.
Source: AFP
