ALSO READOil slides towards steep weekly loss as supply fears mount Oil slides towards weekly loss on excess supply worries Oil prices climb after unexpected drop in U.S. crude stocks Oil down slightly; U.S. inventory draw offsets trade war fears Oil falls about 2 percent after surprise U.S. crude build
By Ayenat Mersie
Brent crude futures
"We're pretty much holding steady on yesterday's gains ... and it does look like there's further upside ahead," said Walter Zimmerman, chief technical analyst at United-ICAP. "People are still nervous about what's going to happen in Syria ... nothing was solved overnight."
Oil prices jumped on Wednesday to their highest level since late 2014 after Saudi Arabia said it intercepted missiles over Riyadh and U.S. President Donald Trump warned of military action in Syria, both of which raised concerns about possible supply disruptions.
Some fundamental signals also supported prices. The Organization of the Petroleum Exporting Countries said the global oil stocks surplus was close to evaporating due to healthy demand and its own supply cuts.
The group is producing oil below its targets, meaning the world needs to use stocks to meet rising demand. OPEC said in its monthly report oil stocks in the developed world fell by 17.4 million barrels in February to 2.854 billion barrels, around 43 million barrels above the latest five-year average.
"We have seen an accelerated shrinkage of stocks in storage from unparalleled highs of about 400 million barrels to about 43 million above the five-year average," Barkindo said.
OPEC, Russia and several other non-OPEC producers began trimming supply in January 2017. Their pact runs until the end of the year and OPEC meets in June to decide on its next course of action.
These bullish factors more than offset pressure from a U.S. government report showing crude oil inventories
Still, analysts were waiting for further fundamental signals. "This all depends on whether demand will be as strong as it is projected to be," said Gene McGillian, manager of market research at Tradition in Stamford.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)