Oil prices try to recover from seven-week lows

Global oil prices rose in European trade on Thursday for the first time in five sessions away from seven-week lows amid short-covering.

Current gains remain limited amid concerns about US oversupply after an expected inventory buildup last week, in a sign of weak demand in the US. 

Oil Prices

US crude rose 0.95% to $79.86 a barrel, with a session-low at $79.05, while Brent rose 0.9% to $84.40 a barrel, with a session-low at $83.55. 

US crude tumbled 2.9% on Wednesday, the fourth loss in a row, plumbing a seven-week trough at $78.85 a barrel, after piercing the barrier of the $80 for the first time since March. 

Brent lost 2.75%, the fourth loss in a row, hitting March 13 lows at $83.32. 

Risk Sentiment 

As long-term US treasury yields decline, market sentiment is improving, especially after the somewhat bearish policy meeting by the Federal Reserve this week. 

US Stocks 

Official data from the Energy Information Administration showed US crude stocks rose 7.3 million barrels in the week ending April 26, while analysts expected a drop of 2.3 million barrels. 

Total stocks are now up to 461.1 million barrels, the highest since June 2023. 

US Production

The EIA also reported no change in US crude output last week at 13.1 million barrels, the lowest since the week ending December 8.