Oil prices edged higher Friday, rebounding from two-month lows caused by a lingering global supply glut.

Benchmark Brent crude hit a 2.5-month low point of $45.83 a barrel Friday, before recovering.

Around 1145 GMT, Brent North Sea crude for delivery in September was up five cents at $46.25 a barrel compared with Thursday’s close.

US benchmark West Texas Intermediate climbed eight cents to $44.83 a barrel.

A rally seen in early July “is tapering off and the markets are starting to feel the effects of a supply glut again”, said Alex Wijaya, a trader at CMC Markets.

Crude had risen from near 13-year lows below $30 in February to above $50 in June owing to fires in Canada’s key oilfields, unrest in key producer Nigeria and the start of the US driving season.

However, with those issues now fading and dealers fretting over Brexit, prices have softened again.

US official data this week meanwhile showed that crude stockpiles had fallen for the ninth week in a row.

Source: AFP