After posting losses for the past three days, oil prices rebounded on Thursday as traders continued to weigh data showing the biggest weekly fall in domestic crude supplies in nearly one year but also the highest total U.S. production level in more than two years, according to Bloomberg MarketWatch.
On the New York Mercantile Exchange, September West Texas Intermediate crude added 31 cents, or 0.7%, to settle at $47.09 a barrel.
October Brent crude, the global benchmark, added 76 cents, or 1.5%, to end trading at $51.03 a barrel on the London ICE Futures Exchange.
OPEC’s global production cap agreement has “faded to the back burner, as the resilient trend of U.S. production continues to keep a lid on prices,” said Tyler Richey, co-editor of the Sevens Report.
“Barring any geopolitical catalysts, $50 [for WTI] will likely remain a stubborn resistance level in the near term, and if production continues to grind higher in the U.S., expect prices to remain under pressure,” he said in its latest report.
There’s also concerns that the OPEC cuts are incentivizing other oil-producing nations, like the U.S., to ramp up output to gain market share.
Meanwhile, September natural gas settled at $2.929 per million British thermal units, up 3.9 cents, or 1.4%, on the New York Mercantile Exchange.