Oil dipped on Thursday as a rally that has pushed up prices by almost 10 percent since early last week lost momentum despite renewed signs of a gradually tightening U.S. market.
A decade ago, any political turmoil in the West Asian region would have an immediate impact on the oil market. Now, despite growing tensions between Saudi Arabia and Qatar, Brent crude, the international benchmark, has fallen to as low as USD 45.62, its lowest level since November.
Oil prices edged up in choppy trade on Tuesday as U.S. crude inventory data that was forecast to show a drawdown faced doubts about OPEC’s ability to reduce a global glut.
U.S. crude stocks rose last week as refineries hiked output, while gasoline stocks decreased and distillate inventories fell, the Energy Information Administration said on Wednesday.
Oil prices rose on Monday, but gains were minimal as investors gauged whether an increase in US drilling and record stockpiles would undermine efforts by producers to cut output and bring the market into balance
According to global news agency Reuters, since late November, major oil companies have announced 11 deals worth more than $500 million each with a combined value of $31 billion, the clearest sign yet that oil executives are more confident a recovery is underway
The world’s top oil companies are back in acquisition mode, targeting smaller exploration and development firms to boost hydrocarbon reserves through acquisitions in contrast to the mergers route that followed previous slumps in crude prices.