Crude oil futures pared most of the day’s losses and ended just marginally down on Thursday, as traders continued to weigh global crude demand and supply positions.
Some bargain hunting after recent sharp declines contributed to oil’s rise from lower levels.
Oil prices were also supported by the U.S. government’s move to deploy defense equipment and security forces to Saudi Arabia to help prevent attacks on the kingdom’s oil infrastructure.
Meanwhile, according to reports, Saudi Arabia has restored most of its production capacity.
West Texas Intermediate crude oil futures for November ended down $0.08, or less than 0.1%, at $56.41 a barrel, after having declined to a low of $55.41 in late morning trades.
On Wednesday, WTI Crude oil futures for November ended down $0.80, or 1.4%, at $56/49 a barrel after data showed a jump in U.S. crude inventories for a second straight week.
While the latest data showed a jump in U.S. crude stockpiles pushed oil prices lower early on in the session, optimism about U.S.-China trade deal happening earlier than expected eased concerns about energy demand outlook.
Markets also took note of the news about the U.S. and Japan signing a limited trade deal, under which Japan will open new markets to about $7 billion in U.S. agricultural products.
The U.S. Department of Defense said in a press release that “in light of recent attacks on the Kingdom of Saudi Arabia,” the U.S. would deploy “one patriot battery, four sentinel RADARs and approximately 200 support personnel” to the kingdom.
The material has been provided by InstaForex Company – www.instaforex.com