Oil prices are rising on Thursday as the unexpected decline in US reserves last week and the decline in production by major producing countries eased the fears of supply oversupply.
However, fears of a global recession caused by the Coronavirus epidemic have limited the growth of oil quotations.
July futures for Brent oil rose by 2.15% to $36.52 per barrel by 08.16 MSK.
Futures on American light oil WTI added 2.21% to $34.23 per barrel.
Brent grew for the second session in a row, while the rise in WTI quotations continues for the sixth day in a row.
Oil reserves in the U.S. fell by 5 million barrels for the week ending May 15, although analysts surveyed by Reuters expected growth of 1.2 million barrels. Meanwhile, stocks at the terminal in Cushinging fell by 5.6 million barrels, reported the day before the Energy Information Office.
“While signs of pressure on WTI storage facilities are positive for prices, the latest report shows that the drop in stocks is more supply-driven than growing demand for products,” Capital Economics said in a note on Wednesday.
Prices are also supported by data on oil shipments, indicating that OPEC+ countries are in compliance with agreements to reduce production by 9.7 million barrels per day.
“With supply being managed through OPEC+ compliance and demand in North Asia recovering, especially in China, things are going in the right direction to support oil prices,” said Victor Sham of IHS Markit.
“If there are no surprises in terms of a second or third wave of viral attack and key OPEC+ members, particularly Saudi Arabia, deepen their cuts, we expect the gradual recovery to continue in the second half of the year,” he said.