Oil firms despite supply glut jitters

5th November 2015, Comments 0 comments

Oil prices firmed Thursday after tanking in the previous session but the market remains under pressure by a global crude oversupply, dealers said.

Nearing midday in London, Brent North Sea crude for December won 14 cents to stand at $48.72 per barrel.

US benchmark West Texas Intermediate for delivery in December rose one cent to $46.31 per barrel compared with the previous day's close.

Prices were hammered Wednesday after data showed that commercial crude inventories in the United States, the world's top oil consumer, rose in the week to October 30.

US production also increased, further supporting forecasts that the crude supply glut that has weighed down oil prices for more than a year will persist well into 2016.

EY analyst Sanjeev Gupta said a strong dollar boosted by expectations of a US interest rate hike in December will hurt demand for commodities like oil priced in the US currency.

"A stronger US dollar will make crude more expensive for importing countries, thereby curtailing demand," Gupta said.

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© 2015 AFP

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