Oil rises above January levels but remains under pressure due to oversupply
Oil prices rose on Thursday after falling to a five-month low in the previous session, but sentiment remains weak as markets remain under pressure from rising US supplies and the global economy faltering.
By 0718 GMT, Brent crude for July delivery was $ 60.79 a barrel, up 16 cents, or 0.3 percent, from the previous session's close.
US WTI crude futures were $ 51.84 a barrel, up 16 cents, or 0.3 percent, from the previous settlement price.
Brent and US crude hit their lowest level since mid-January on Wednesday, at $ 59.45 and $ 50.60 a barrel respectively, amid rising crude inventories and record production in the United States, and energy demand from the global economic slowdown.
US crude oil production rose to a record 12.4 million bpd in the week ending May 31, the Energy Information Administration said yesterday, adding 1.63 million bpd since May 2018.
US crude oil inventories jumped 6.8 million barrels in the week to May, reaching 483.26 million barrels, the highest since July 2017.
With abundant supplies despite OPEC-led production cuts, much depends on demand.
Bank of America Merrill Lynch said this week that "the growth of global demand for oil is the weakest rates since 2012" below 1 million barrels per day, and that "leading to the decline" in recent oil prices.
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