Oil prices rebound as market refocuses on supply tightness

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Oil prices rebound as market refocuses on supply tightness
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Brent crude rose 66 cents to $92.54 a barrel by 1010 GMT, while U.S. West Texas Intermediate crude was up 62 cents at $89.14

Oil rebounded on Thursday as expectations of a tighter global crude supply outlook for the rest of 2023 overshadowed concerns over weaker economic growth and rising U.S. inventories.

“That this genuinely bearish stock report only led to a brief temptation to sell speaks volumes and underlines the market mentality,” said Tamas Varga of oil broker PVM.Brent crude rose 66 cents, or 0.7 per cent, to $92.54 a barrel by 1010 GMT. U.S. West Texas Intermediate crude was up 62 cents, or 0.7 per cent, at $89.14.

Priyanka Sachdeva, senior market analyst at Phillip Nova, said supply fears are underpinning oil prices as producers “adamantly stick to restricted production”.

 

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