Oil hovers above $28, waiting for supply data
On Wednesday, oil prices edged up during Asia trade. However, they were traded in rather a narrow range due to the fact that supply isn’t expected to dip in the nearer future.
Sweet, light crude oil traded at $28.57, a 63 cents soar on the New York Mercantile Exchange. Additionally, on London’s ICE Futures exchange, April Brent crude oil surged 69 cents up to $31 a barrel. On Tuesday, oil demonstrated a fourth-straight session of losses, pulling back under $28 right after American Energy Information Administration cut its 2016 predictions for oil prices.
An analyst of BMI Research, Peter Lee said that there’s rising US crude-oil inventory and no clear signs of production cut from the OPEC. There have been rumors about production cuts by OPEC countries, though it seems absolutely unreal, especially considering OPEC oil producers require broad cooperation with other oil-producing countries throughout the world.
Oil prices have recently found some support on speculation regarding possible production cuts. Nevertheless, market sentiments weakened when hopes of lower supply from key oil producers faded.
The analyst added that prices would most likely keep bouncing in the same range in the nearer future notwithstanding decent support from a driving greenback.