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Bloomberg
Oil gained after suffering its biggest drop on the day of an Opec meeting in more than four years.
Futures rose 0.8 percent in New York after an industry report showed US oil inventories fell by almost 5 million barrels last week. Prices were still far from recouping the 4.8 percent decline, when concerns about the global economy overshadowed the decision from Opec and its allies to extend output cuts.
On Wednesday, the global benchmark crude traded at a premium of $6.29 to WTI for the same month.
The Organization of Petroleum Exporting Countries and its friends including Russia agreed to prolong cuts into 2020 as they seek to reduce global stockpiles. But concerns over oil demand proved more decisive for the market following weak manufacturing data from the US, China and Europe.
“Clearly, there is no getting away from economic bearishness and cooling demand fundamentals,†PVM Oil Associates Ltd. analyst Stephen Brennock wrote in a report. “This morning, however, has provided a reprieve from the selling frenzy as those searching for a bullish catalyst pin their hopes on another drawdown in US oil inventories.â€
West Texas Intermediate crude for August delivery climbed 42 cents to $56.67 a barrel on the New York Mercantile Exchange. It slid 4.8 percent, the most in more than a month.
Brent for September settlement rose 63 cents to $63.03 a barrel on the ICE Futures Europe Exchange after slumping 4.1 percent in the previous session. The spread between contracts for December 2019 and December 2020 narrowed to just $1.91, compared with $2.44 for the same WTI deliveries.