Crude oil prices recovered after a weak start and ended modestly higher on Wednesday, after the Organization of the Petroleum Exporting Countries (OPEC) said a global recession is unlikely and that shale oil production in the U.S. will be less than expected next year.
Oil was also supported by the Federal Reserve Chairman Jerome Powell’s testimony before the Congress that the U.S. economy would see a sustained expansion thanks to the impact of recent interest rate cuts.
Oil prices drifted lower earlier in the session amid concerns about the outlook for energy demand due to the trade dispute between the U.S. and China.
Powell said “the baseline outlook remains favorable,” and reiterated that the central bank will hold interest rates in the near future.
West Texas Intermediate Crude oil futures for December ended up $0.32, or about 0.6%, at $57.12 a barrel.
On Tuesday, WTI Crude oil futures for December ended down $0.06 at $56.80 a barrel.
Brent Crude oil futures for December ended up $0.31 at $62.37 a barrel, well off the day’s low.
According to reports, OPEC Secretary General Mohammad Barkindo said global economic fundamentals remained strong and that he was still confident the U.S. and China would reach a deal.
The American Petroleum Institute will release its data for the latest week at 4:30 p.m. IST on Wednesday.
On Thursday, the Energy Information Administration is scheduled to announce its weekly inventory data.
The material has been provided by InstaForex Company – www.instaforex.com