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Oil prices off early highs as oversupply concerns weigh

Published 2016-02-04, 08:19 a/m
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Investing.com - Oil prices gave back early gains on Thursday as concerns over a massive global supply glut continued to pressure markets.

U.S. crude futures were at $32.32 per barrel at 12.01 GMT, off highs of $32.96 after rallying 8% from below $30 per barrel on Wednesday.

Brent crude was down 0.93% at $34.74 per barrel after rising as high as $35.72 earlier.

Prices had been boosted by the weaker dollar and from ongoing but unconfirmed talk of a potential meeting of oil producers to cut output in support of prices, which have fallen around 70% since mid-2014.

But prices remained volatile amid concerns about persistent oversupply and slowing demand.

A U.S. government report on Wednesday said that U.S. crude stocks rose by 7.8 million barrels last week, to a record 502.7 million barrels, compared with analyst expectations for an increase of 4.8 million barrels.

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