Oil prices rebounded on Wednesday, clawing back earlier losses as markets focused on the tight supply outlook.
International benchmark crude Brent traded at $92.89 per barrel at 10.28 a.m. local time (0728 GMT), a 0.50% gain from the closing price of $92.43 a barrel in the previous trading session on Tuesday.
The American benchmark West Texas Intermediate (WTI) traded at the same time at $91.16 per barrel, up 0.85% from Tuesday’s close of $90.39 per barrel.
Oil prices came under pressure on Tuesday over concerns that global central banks would keep interest rates at high levels for an extended period, leading to a decrease in global oil demand.
However, tighter fundamentals reversed the losses. Supply concerns triggered by output cuts in Saudi Arabia and Russia of around 1.3 million barrels per day (bpd) until the end of the year continue to boost prices.
Russia’s decision last week to limit the export of gasoline and diesel fuel to balance the domestic market exacerbated supply concerns.
Meanwhile, the American Petroleum Institute (API) announced its estimate of a rise of around 1.59 million barrels in US crude oil inventories relative to the market expectation of a 1.65 million barrel drop.
The US Energy Information Administration’s data on oil stocks will be announced later on Wednesday.
