November Brent crude LCOX6, +0.63% on London’s ICE Futures exchange rose $0.30, or 0.7%, to $46.15 a barrel.
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Still, the report was enough to rattle oil markets.
In a report published on Tuesday, IEA said Global oil demand growth is slowing at a faster pace than initially predicted. On the New York Mercantile Exchange, light, sweet crude futures for delivery in October CLV6, +0.34% traded at $43.72 a barrel, up $0.5, or 0.3%, in the Globex electronic session.
The chairman of Libya’s National Oil Corporation visited the port of Zueitina on Wednesday and said he would work to lift force majeure there, according to the head of a guard force in control of the terminal. That earlier draw, the highest in 15 years, was due to Tropical Storm Hermine delaying oil arrivals into the U.S. Gulf Coast for several days.
However, Stockpiles of gasoline and distillates, including heating oil and diesel fuel, rose by 4.6 million barrels in the week to Sept.9, the EIA said.
China and India, which had been key drivers recently of demand growth, are “wobbling”, it said, while a slowdown in the USA and economic concerns in developing countries have also contributed to the surprise development.
After some profit taking, the bears came in as the fears over a global glut once again clouded sentiment within the crude market after the International Energy Agency (IEA) on Tuesday warned that it may take longer for the oil market to re-balance.
“The statistics from the EIA will be the most important event of the day”, Tamas Varga, an analyst at PVM Oil Associates Ltd., said by phone.
Saudi Arabia has retaken the position of the world’s top oil producer from the US, according to the International Energy Agency.
But in its latest monthly report the agency said consumption growth has dipped to its lowest in two years, with China and India buying less crude.
The IEA found that high-cost non-OPEC producers have shut in about 1.4 million bpd since the end of 2014.
Analysts believe that the resumption of Libya’s oil production and exports is a key development at the oil market ahead of OPEC’s meeting in Algeria.
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SINGAPORE – Oil prices rebounded in early Asian trade on Thursday after falling about 3% in the previous session, supported by an unexpected fall in United States crude inventories.
