Oil prices rose in Europe on Wednesday to keep their gains for a second straight day, near a two week high, on hopes of improving global demand that will help restore market balance, but gains remain limited after industrial data showed the US crude inventories rise. , And expectations of a rise in OPEC production for the third month in a row.
By 08: 59 GMT, US crude rose to $ 46.50 a barrel from the opening level of $ 46.26, recording a high of $ 46.51 and a low of $ 46.13.
Brent crude rose to $ 48.95 a barrel from the opening level of $ 48.70 and recorded a high of $ 48.97 and a low of $ 48.57.
US crude oil yesterday gained 0.6 percent, hitting a two-week high of $ 46.90 a barrel, and Brent crude rose 0.7 percent, its third gain in four days.
The hopes of improving world oil demand have rebounded this week, helping to restore balance to the market, especially as consumption in China, the world’s No. 2 oil consumer, surged near its all-time high.
Kuwait’s OPEC governor said world stocks would fall more rapidly in the second half of the year as demand rose.
In the industrial data, the American Petroleum Institute announced yesterday that crude inventories in the country rose by about 1.6 million barrels for the week ending July 14, in contrast to the experts forecast a decline of about 3.5 million barrels.
Traders are looking ahead to the official inventory data released by the US Energy Information Administration, with expectations for a 3.6 million barrel decline, the third weekly decline in a row.
Most of the outlook for the markets is that OPEC production will rise in July for the third month in a row, especially as production in Libya and Nigeria, both members of the organization and exempted from the cut production agreement, is accelerating.
According to sources in Libya, oil production in the country rose to 1.1 million barrels per day in July, the highest level of production since 2013, and Libya pumped about 700,000 barrels in January.
The head of the National Oil Company of Libya, Mustafa Sannallah, said he would lead his country’s delegation to the meeting of the committee to monitor the implementation of the OPEC agreement and independent producers, which will take place next week in St. Petersburg, Russia.