Despite persisting concerns about the outlook for energy demand, crude oil prices edged higher on Wednesday amid expectations the OPEC will continue to cut outputs.
The rise in oil prices was also due to some short-covering by traders after recent sell-off.
Traders were also looking ahead to the weekly oil reports from the American Petroleum Institute (API) and the Energy Information Administration (EIA).
West Texas Intermediate Crude oil futures for November ended up $0.55, or about 1%, at $53.36 a barrel.
On Tuesday, the WTI Crude oil futures for November down $0.78, or 1.5%, at $52.81 a barrel, after having tumbled by about 2% a session earlier.
According to reports, OPEC and its allies are committed to maintaining oil market stability beyond 2020.
OPEC, Russia and other oil producer allies will do whatever is possible within their powers to ensure relative stability is sustained beyond 2020, OPEC Secretary-General Mohammad Barkindo said on Tuesday.
A downward revision in global growth forecast by the International Monetary Fund, uncertainty about Brexit and U.S.-China trade deal and disappointing U.S. retail sales data raised concerns about outlook for energy demand and limited oil’s uptick.
Traders were a bit cautious, however, as they looked ahead to weekly inventory data. The API’s weekly oil report is due later today, the EIA will release its data Wednesday morning. The reports are delayed by a day due to Columbus Day holiday on Monday.
The material has been provided by InstaForex Company – www.instaforex.com