Oil prices recovered slightly on Thursday but were unable to claw back the more than 9% decline in the previous three days as demand concerns in major consumers overrode signals that the U.S. may pause its interest rates increases.
Brent futures rose 17 cents, or 0.2%, to $72.50 a barrel by 0257 GMT. Since Friday, however, Brent has dropped more than 9% and earlier on Thursday fell to as low as $71.28.
U.S. West Texas Intermediate (WTI) crude rose 2 cents, to $68.62 a barrel. WTI dropped almost 11% from Friday to Wednesday’s close and earlier on Thursday fell to as low as $63.64.
Prices have plunged this week amid signs of weak manufacturing growth in China, the world’s largest oil importer, and after the U.S., the world’s biggest oil user, raised interest rates to their highest since 2007 on Wednesday, which threatens future economic growth there.
Still, with some positive growth in the U.S. services sector and expectations that output cuts by major producers that started this month will limit supply, investors and analysts are buying back into the market.
“Oil is starting to find some support as all the bad supply and demand news has been priced in,” said Edward Moya, an analyst at OANDA. SOURCE: REUTERS
