But stubbornly high oil storage volumes and the staying power of USA shale producers has continued to keep oil prices down.
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Futures were little changed in London after dropping 2.5 percent on Tuesday. Energy Information Administration data Wednesday is forecast to show supplies rose by 4 million barrels as the peak summer demand period ends.
Oil prices also fell 3 percent on Tuesday, pressured by revised forecasts from the International Energy Agency and the Organization of the Petroleum Exporting Countries that suggested the global crude glut could persist. It added that non-OPEC supply is expected to return to growth next year. “Our updated base case scenario has overall OPEC production steady at 33.3 million barrels a day, but without assuming a recovery in Libya and Nigeria that could put another million barrels per day on the market in the months ahead”, said Tim Evans, a Citi Futures analyst in a note. The API build was “much less” than expected and boosted prices, he said.
Benchmark Brent crude futures fell below the $46-a-barrel mark, trading down 1.7 per cent at $45.79 a barrel, down 80 cents, at 1045 GMT.
Brent North Sea crude for November delivery shed $1.0 to $47.32 a barrel compared with the close on Monday. The London-based Energy Aspects said in a note that while it might look bullish, crude stocks still stood at 511 million barrels in the USA, 55 million barrels higher than the corresponding week in 2015. The cartel forecast that output from outside the group would only contract by 610,000 barrels a day – following an upward revision of 180,000 barrels a day from August, to average 56.32 million barrels a day.
SINGAPORE – Oil prices rebounded in early Asian trade on Thursday after falling about 3% in the previous session, supported by an unexpected fall in USA crude inventories.
The oil surplus will last longer than previously thought as demand growth slumps and supply proves resilient, the IEA said in its monthly report. The resumption of shipments from Ras Lanuf and Es Sider could allow Libya to double crude output to 600,000 barrels a day within four weeks, NOC Chairman Mustafa Sanalla said Tuesday in a statement on the company’s website.
The review said that non-OPEC states faced the biggest damage from the falling oil prices. “I am skeptical this will happen”. This was so, according to the IEA, because “Middle East producers opened the taps”.
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Libya is planning to lift heavy security measures at its port of Zueitina, with the country’s crude exports then potentially beginning.
