As the week draws curtain, oil prices leaped Thursday after industry data showed a surprise drop in U.S. crude inventories while comments from an OPEC official about lower-than-expected U.S. shale production growth in 2020 also provided some support for oil.
However, prices were capped by mixed signs for oil demand in China, the world’s biggest crude importer, as industrial output increased in October at a less-than-expected rate but oil refinery throughput last month rose 9.2% from a year earlier to the second-highest ever.
Brent futures LCOc1 rose 16 cents, or 0.3%, to $62.53 per barrel by 0250 GMT while U.S. West Texas Intermediate crude CLc1 gained 22 cents, or 0.4%, to reach $57.34.
Business Hilights recalls that the development followed the remarks made by Secretary General of the Organization of the Petroleum Exporting Countries (OPEC), Mohammad Barkindo on Wednesday that there would likely be downward revisions of supply going into 2020 especially from United States shale, adding that some U.S. shale oil firms see output growing by only around 300,000-400,000 barrels per day (bpd).
Analysts say the rise may continue over the weekend till later part of next week depending again, on the outcome of ongoing US-China trade differences.
