Oil Pause After Five-day Slump
LONDON, (APP - UrduPoint / Pakistan Point News - 28th july, 2016) - Oil prices held steady Thursday after slumping to three-month lows as a surprise jump in US crude stocks stoked global supply glut jitters. US energy department data showed Wednesday that inventories were 13.4 percent higher on-year, while gasoline stocks were up 11.8 percent, indicating demand remains weak as the peak holiday driving season comes to a close.
The news had sent Brent tumbling three percent and West Texas Intermediate more than two percent down to sit at levels not seen since April. "The downward momentum in oil prices intensified yesterday after the publication of US inventory data," said Commerzbank analyst Carsten Fritsch.
However, the market steadied in London early afternoon deals as traders paused for breath. Shortly after 1200 GMT, European benchmark North Sea Brent crude was down four cents at $43.43 per barrel, while New York's West Texas Intermediate rose 12 cents to $42.04 a barrel. Some bargain-buyers moved in, helped by a weaker Dollar after the Federal Reserve indicated that any US interest rate increase would be slow and measured.