Singapore, Nov 14 (AFP) Oil prices bounced back in Asia today after diving to fresh lows in the previous session on expectations that OPEC is unlikely to cut production levels to counter a global supply glut.
US benchmark West Texas Intermediate (WTI) for December delivery rose 27 cents to USD 74.48 while Brent crude for January gained 61 cents to USD 78.10 in mid-morning trade.
WTI plunged USD 2.97 in New York trade Thursday, while Brent crude for December dived USD 2.46 in London on the last day of the contract.
“We are seeing a slight rise in oil prices at the moment, but the key driver is still bearish sentiment about any possible OPEC production cut,” Ric Spooner, chief market analyst at CMC Markets in Sydney, told AFP.
“Rightly or wrongly, we are seeing price adjustments in anticipation of OPEC not doing anything about global oversupply, or not doing enough,” he added.
Concerns about a global supply glut were exacerbated after the latest US petroleum report by the Department of Energy released Thursday showed the country produced 9.063 million barrels per day in the week ended November 7.
That marked the highest production since at least January 1983 when the department began publishing the statistics.
US crude reserves at the oil hub in Cushing, Oklahoma, closely watched by traders because they serve as reference for WTI traded in New York, jumped by 1.7 million barrels last week to 22.5 million barrels.
Dealers are largely expecting the 12-nation Organization of Petroleum Exporting Countries to decide against reducing output to stem the global supply glut, in part caused by a flood of oil extracted from shale rock in the US.
OPEC’s next meeting is set for November 27 in Vienna, home to the cartel’s headquarters. (AFP)
