According to Reuters, Oil value rebounded from near 2017 lows this morning as preliminary data displayed a larger-than-expected drop in U.S. crude stocks, revitalizing bullish sentiment about oversupply. The American Petroleum Institute released data that assessed U.S. oil inventories and displayed late Tuesday that crude stocks had fallen last week by 4.2 million barrels, almost double the anticipated drop by analysts at Reuters.
“The API statistics are helping the market recover, but the underlying sentiment is still bearish,” Tamas Varga, London brokerage PVM Associates analyst said.
“U.S. production growth has slowed during the past couple of weeks. If continued today it may also add some glimmer of hope for the bulls, who increasingly have been losing patience,” Ole Hansen, head of commodities strategy at Saxo Bank said.
Oil investors watch producing countries closely that have made pledges in late 2016 about cutting production by 1.8 million barrels per day (bpd) by the middle of 2017.