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AFP
Oil prices rebounded slightly on Thursday after tanking the previous day, but gains were capped by US stockpiles data and the prospect of rising output in Libya and Nigeria, dealers said.
At about 1015 GMT, US benchmark West Texas Intermediate for delivery in October was up 20 cents at $43.78 a barrel.
Brent North Sea crude for November delivery won
32 cents to $46.17 compared with the close on
Wednesday.
The market had tumbled Wednesday after the US Energy Information Administration (EIA) said gasoline and distilled products inventories rose last week, overshadowing news of a surprise fall in crude
supplies.
Later on Wednesday, Libya’s National Oil Corporation said it would double production within four weeks after it was handed control of crucial ports that had been seized by forces loyal to the country’s rival administration.
The news from Libya —which has Africa’s largest oil reserves — fanned long-standing worries about a global supply glut and overproduction that have hammered prices for more than two years.
At the same time, Nigeria — which is the African continent’s biggest crude producer — appears set to also increase its oil exports, traders said.
“Oil arrested a slump that had seen it fall … for two consecutive days,” said analyst Chris Todd at brokerage Love Energy, noting prices were buoyed by the US inventory data.