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U.S. crude prices edge up on short covering, but oversupply still bites

Published 2015-11-18, 07:42 p/m
© Reuters. U.S. crude prices edge up on short covering, but oversupply still bites
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By Henning Gloystein
SINGAPORE, Nov 19 (Reuters) - U.S. crude oil prices edged up
in early trading in Asia on Thursday but are struggling to break
away from the $40 per barrel mark as oversupply and high
inventory levels ensure an ongoing glut.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were
trading at $40.88 per barrel at 0031 GMT, up 13 cents from their
last settlement.
The contract fell below $40 for the first time since August
on Wednesday, and traders said that the slight gains were more a
result of short covering than a more bullish sentiment.
urn:newsml:reuters.com:*:nL3N13D20X
Overall, oil markets remain oversupplied, with rising U.S.
stockpiles the most visible evidence.
"Rising U.S. crude stockpiles continue to remain a major
(downward) driver of price," ANZ bank said on Thursday.
U.S. crude inventories grew by 252,000 barrels last week to
487.3 million barrels, close to record highs, according to data
from the Energy Information Administration (EIA), highlighting
that more crude is being produced than needed. urn:newsml:reuters.com:*:nL1N13D1FE
As a result, U.S. crude futures have been struggling to
break higher this week, although ANZ said that rising crude
demand from U.S. refineries was also preventing prices from
falling much further.

(Editing by Richard Pullin)

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