U.S. oil prices on Thursday extended their sharp climb from the session before amid rising stock markets, but worries over a glut in crude supply and concerns over a faltering global economy kept a lid on gains.
Source: www.reuters.com
After gaining nearly 9% Wednesday, WTI prices extended their gains into early into Thursday before cooling off later in the day due to persisting global supply concerns. The sharp rebound in oil prices on Wednesday was driven by a strong global equity rally on the back of the Trump administration’s attempt to shore up investor confidence and a report on strong U.S. holiday spending. OPEC’s recent meeting to cut production by 1.2 million barrels, as well as an expected drop in U.S. crude inventories for the week to Dec. 21, also drove the WTI prices. However, WTI crude futures, as well as Brent crude prices, are down nearly 40% from October highs due to concerns of an oversupply and slowing global economy.
