US, WASHINGTON (ORDO NEWS) — Oil prices rose Thursday after a sharp drop in the previous session, as a record increase in US stocks raised hopes for deepening production cuts in the face of a collapse in demand due to coronavirus.
After official data showed that US stocks set a record, showing a weekly increase of 19.2 million barrels for the first time in history, WTI fell to a minimum since February 2002, with Brent losing more than 6%.
Futures on Brent rose 1.16% to $ 28.01 per barrel against 08.49 Moscow time, while futures on US light oil WTI grew 0.05% to $ 19.88.
Concerns over falling demand held back growth, with both contracts growing more than 2.5% earlier in the session.
“The huge increase in reserves, paradoxically as it may sound, has provided some support for prices, as it portends that more wells will close soon, which will actually reduce production in the USA,” said Stephen Innes, chief global strategy specialist AxiCorp markets.
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