Brent crude was down $ 57.81 a barrel, up $ 1.58, or 2.81%, from its most recent close to 0634 GMT, while West Texas Intermediate crude futures jumped $ 1.61, or 3, 15%, to $ 52.70 a barrel.
Both contracts fell to their lowest level since January Wednesday after a surprise build on US crude inventories, raising concerns that China-US. the trade war could further undermine demand growth this year.
Futures oil jumped more than $ 1 a barrel on Thursday, recovering half of its nearly 5% loss in the previous session amid expectations that lower prices could lead to lower output.
“The threshold is $ 60 a barrel, and if you go below that for a significant period of time, I would expect supplies to be taken off the market in order to support prices,” said Virendra Chauhan, an oil analyst at Energy Aspects in Singapore. .
Analysts said crude prices were moving higher on Thursday in hopes that Saudi Arabia, the world’s largest oil exporter and other producers in the Organization of Petroleum Exporting Countries (OPEC) could take action to support the market by reducing supply.
Bloomberg in a report Wednesday quoted a Saudi official as saying the country is in talks with other producers to take action to stop the oil price sliding.
“The rhetoric of trade war will continue to drive the markets, but comments from Saudi Arabia can lead to unprecedented action to stabilize prices,” said Alfonso Esparza, a senior market analyst at Toronto-based Oanda.
“It’s hard to imagine what it would look like given how difficult it was to get OPEC + to accept the production limit agreement, but given the potential free fall from the gross, if the trade war continues, no option it’s not off the table, ”he said, referring to OPEC +, a group including OPEC and non-OPEC producers such as Russia.
Esparza added that a weaker US dollar has also provided support for the return of the oil price.
The dollar index, which measures the green against six other major currencies, has fallen 1% since July 31, a day before the United States escalated its trade dispute with China by pledging to impose more tariffs, set in motion vengeance steps from China.
China’s crude oil imports, the world’s largest importer, rose 14% in July from a year earlier as its new refineries boost purchases. However, fuel exports continued to rise as supply outstripped demand in the world’s second largest consumer of oil./Investing.com