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| Picture Credit:Reuters |
Price of oil in the
international market went up to $ 42 a
barrel on Wednesday from the previous lowest price.
Brent crude was up 27 cents
a barrel at $42.07 at 0957 GMT (0557 EDT). It reached $41.51 on Tuesday, the
lowest since April 18. U.S. crude added 28 cents to $39.79.
"The sentiment is still
quite negative and depressed on oil prices," Eugen Weinberg told FOX TV. "There are
factors which should be supportive, but at the moment I think there is no
single (piece of) news which would convince the bears that the decline is
over."
The U.S. dollar stayed close
to a six-week low against a basket of currencies, lending oil some support.
Weakness in the dollar makes dollar-denominated commodities cheaper for other
currency holders.
Also supportive was
Tuesday's American Petroleum Institute report on U.S. inventories, which showed
a 1.34 million-barrel drop in crude stocks, although the decline was about in
line with analyst expectations.
Oil rallied from a 12-year
low near $27 in January to a 2016 high of almost $53 in June, supported by an
initiative from OPEC and outside producers including Russia to freeze output
and by hopes that the supply glut would ease.
But the output deal fell
apart and since June, signs that the glut is proving more resilient as well as
concern about slowing economies in Asia - the driver of oil demand growth - and
Europe have weighed.
"Risks for oil remain
skewed to the downside in 2H16," analysts at Morgan Stanley said a report.
"Supply disruptions and risk appetite were supportive April-June, but
fundamental headwinds are growing, which outnumber any recent positives."
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