Oil Higher Ahead of US Weekly Crude Inventories

Oil prices rebounded slightly on Wednesday after a steep fall in the previous session as OPEC and its allies’ decision to extend output cuts was not enough to counter investors’ concerns about the slowing global economy.

Prices were supported by widely-watched data showing a larger-than-expected drawdown in U.S. crude oil inventories, with government data due later in the day.

Brent crude futures LCOc1 for September delivery were trading up 64 cents at $63.04 a barrel by 1136 GMT.

U.S. crude futures for August CLc1 were up 47 cents at $56.72 a barrel. Both benchmarks fell more than 4% on Tuesday as worries about a slowing global economy.

The Organization of the Petroleum Exporting Countries and other producers such as Russia, a group known as OPEC+, agreed on Tuesday to extend oil supply cuts until March 2020 as members overcame differences to try to prop up prices.

via Reuters

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