Crude oil prices rebounded from the levels on Wednesday, amidst official data from the U.S. that showed a decline in crude oil inventories and fears of declining supplies from Russia.
Data released on Wednesday by the Energy Information Agency revealed a 0.71- million-barrel drop in inventories in the week ended July 14. Crude oil inventories had increased by close to 6 million barrels in the previous week and markets were expecting the inventories to decline by 2.4 million barrels.
Data released on Tuesday by the American Petroleum Institute had showed crude oil inventories declining by 0.80 million barrels during the week ended July 14, lower than the decline of 2.25 million barrels that the markets were expecting. Crude oil inventories had increased by more than 3 million barrels in the previous week.
Hopes of an easing in the monetary policy stance by central banks, in the wake of decrease in inflation across regions eclipsed negative sentiment created by the less than expected economic growth and low oil demand from China. Hopes of support measures from China and fears of supply cuts by Russia also aided the surge in prices.
Brent Oil Futures for September settlement which had finished Wednesday's trading at $79.46 traded between $79.17 and $80.93 on Thursday. It is currently at $80.00, having gained 0.68 percent from the previous close.
West Texas Intermediate Crude Oil Futures for September settlement which had a closing price of $75.29 on Wednesday ranged between a high of $75.95 and a low of $75.14 on Thursday. The current price of $75.93 represents a gain of 0.85 percent from the previous close.
