By: Mahmoud Gamal
Mubasher: Oil prices returned to the green, albeit slightly, after data released Wednesday showed the US oil inventories were down, said analyst Ahmed Ashoush.
US stockpiles fell by 1.3 million barrels last week, whereas analysts had expected a gain of 671,000 barrels.
By 04:06 GMT, US crude added 0.21% or 10 cents, reaching $48.04 per barrel, after falling earlier to $47.96 pb, while Brent crude edged up 0.12% or 6 cents to $49.01 pb, from $48.95 pb earlier.
Current prices have encouraged traders to speculate in order to cover losing positions, the analyst said, noting that this comes amid a decline in refinery operations.
Oil gains came on the back of statements by Iraqi officials that the country was willing to take part in an output reduction scheme in the upcoming meeting of the Organisation of Petroleum Exporting Countries (OPEC), according to Ashoush.
Next week, OPEC will discuss an output cut by 4% to 4.5% or around 1 million barrels per day in 2017, a step that is likely to boost oil prices.
Translated by: Nada Adel Sobhi
