Crude oil futures showed signs of recovery on Thursday, reversing some of the losses from earlier in the week as traders positively reacted to the latest reports of a significant drawdown in gasoline supplies, according to Bloomberg MarketWatch.
On the New York Mercantile Exchange, September West Texas Intermediate crude rose $1.10 a barrel, or 2.7%, to settle at $41.93 a barrel.
The rebound back above $40 came as “traders attempt to balance declining North American production levels and expectations of increasing global fuel demands (the EIA forecasts global oil demand to increase by 1.3M barrels a day in 2017) in the coming year against the near glut levels of global petroleum inventories that overhang the market,” according to TFS Energy analysts.
On the London ICE Futures Exchange, October Brent crude, the global benchmark, posted an increase of $1.19, or 2.8%, to settle at $44.29 a barrel.
Meanwhile, September natural gas futures fell 0.5 cent, or 0.2%, settling at $2.834 per million British thermal units on the New York Mercantile Exchange.