Oil prices rise as United States reports mixed data

"Prices began to recover following the publication of the US inventory data [on Wednesday], and continued to do so into the morning", Commerzbank said in a note.

WTI light sweet crude for September was up 25 cents at USD39.76 a barrel, trimming significant losses from the past few sessions. The US government will issue official inventory data on Wednesday.

The Energy Information Administration is due to release its weekly petroleum status report for the week ended July 29th at 10:30 am ET. Last week, the EIA reported that USA crude stockpiles fell by 1.9 million barrels the week-ending July 29.

US crude output decreased by 55,000 barrels a day to 8.46 million a day, the EIA reported Wednesday.

West Texas Intermediate (WTI) crude crude futures fell 55 cents, or 1.3 percent, to $41.38 per barrel at 1:08 p.m. ET (1708 GMT).

Traders said that oil markets were still under pressure from overproduction in crude and also refined products, which has left onshore storage tanks filled to the rims and triggered the chartering of some tankers to store unsold fuel.

According to the latest inventory data, the crude oil inventories surged to 522.5 million barrels, which is high for this time of the year. Refinery crude demand jumped 266,000 barrels a day from the prior week.

However, there was also an unexpected increase in crude reserves, which rebounded by 1.41 million barrels.

Brent for October settlement climbed $1.19, or 2.8 percent, to close at $44.29 a barrel on the London-based ICE Futures Europe exchange on Thursday.

Prices briefly broke into positive territory after the U.S. Labor Department said Friday morning that nonfarm payrolls rose by a seasonally adjusted 255,000 last month - far higher than economists' expectations. We believe that this data had a negative impact on the crude oil prices along with the uncertainty about the hike of the interest rate in the US.

Oil prices are expected to remain low through mid-2017, according to a recent forecast by USA financial services company Morgan Stanley. On the other hand, the better-than-expected United States non-farm payroll data, which reported the creation of 255,000 jobs in the July, strengthened the U.S. dollar.



Other news