Oil prices rebounded overnight with benchmark crude Brent now trading at $51.70 a barrel having gained a hefty one-dollar on a barrel since yesterday’s trading.
The jump in price from near recent lows came on the back of bullish set of overnight US energy data.
A note by Goldman Sachs says many London oil traders will feel more comfortable buying oil Wednesdaymorning versus late yesterday, as analysts start to see signs that a low may have been established – at least for now.
Brent crude, the global benchmark, has dropped by almost 10 per cent to a low of $50.25 a barrel in the last week, while US marker West Texas Intermediate has fallen almost 11 per cent to $47.07 a barrel.
Yesterday, Saudi Arabia, the world’s biggest oil exporter, moved to allay fears that the kingdom was backing away from its pledge to curb production, underlining its concern about a 10 per cent plunge in the crude price over the past week.
The kingdom’s energy ministry rushed out a rare statement on Tuesday asserting its commitment to “stabilising the global oil market”, just as global benchmark Brent crude slipped towards $50 a barrel for the first time this year.
The statement, released after 8pm in Riyadh, came after Opec’s monthly report showed Saudi Arabia’s production had increased in February, adding to pressure on the market that was already concerned about a rebound in US shale oil output.
“Saudi Arabia assures the market that it is committed and determined to stabilising the global oil market by working closely with all other participating Opec and non-Opec producers,” the ministry said.
