Oil bounces after slide of previous session overabundance concerns persist

NEW YORK (Reuters) – Oil prices rose nearly $ 2 a barrel on Wednesday, rebounding from the lowest levels in months after US government data showed strong demand for refined fuel. but the growth of the world supply of crude was worrying.

Brent LCoC1 futures increased by $ 1.55 to $ 64.08 per barrel, a gain of 2.5% at 13:12. EST (18:12 GMT). CLc1 futures on WTI (West Texas Intermediate) crude increased by $ 1.89 to $ 55.32 per barrel, a 3.5% gain.

USOILC crude inventories = ECI rose 4.9 million barrels last week, the Energy Information Administration announced, a larger than expected increase. Inventories of crude increased for nine consecutive weeks, the longest increase since March 2017. [EIA/S]

Crude stocks in Cushing (Oklahoma), WTI USOICC's delivery hub = ECI, dropped 116,000 barrels, a first drop in nine weeks, the EIA said.

USOILG = ICE gasoline inventories fell by 1.3 million barrels to the lowest level since December 2017, while USOILD = ICE distillate stocks dropped by 77,000 barrels, according to data from the United States. ; EIA.

"The report was somewhat bearish due to the large inventory of crude oil, but the reduction in refined product stocks and the leap forward in refining activity could mark the end of the recent series of mainly bearish reports, "said John Kilduff, partner of Encore Capital Management in New York.

The overall market remained weak after crude fell by more than 6 percent in the previous session, while global equities dropped amid worries over the economic outlook.

Brent has fallen more than 25% since the record reached since October 3, amounting to 86.74 dollars (86.74 USD), reflecting concern about slowing demand in 2019 and abundant supply from Saudi Arabia, Russia and the United States.

Concerned by the prospect of a new overabundance of supply, the Organization of Petroleum Exporting Countries plans to reduce its production only a few months after increasing its production.

The OPEC, Russia and other non-OPEC producers are planning to reduce their supply of one million barrels per day (bpd) to 1.4 million bpd during Meeting on December 6, sources close to the file said.

However, analysts believe that Saudi Arabia may find it more difficult to take action to support prices, while the United States is pushing to keep them at a low level. US President Donald Trump on Wednesday congratulated Saudi Arabia for helping to lower oil prices.

Riyadh may feel more inclined to respond to US demands after Trump promised Tuesday to be an "unwavering partner" of Saudi Arabia, while Crown Prince Mohammed bin Salman was aware of the situation. A murder plan of journalist Jamal Khashoggi.

US energy companies conducted three oil drilling operations during the week of November 21, bringing the total to 885, a total ofGE.N) Energy services firm Baker Hughes said Friday.

"It is fair to say that the price of oil will continue to be quite volatile by December 6, the date of the OPEC meeting," said Brian Kessens, General Manager of Tortoise. "There will be a lot of different rhetoric and anticipation about what's really going to happen."