Price rise of crude oil to be supported by falling US inventories

Oil prices are recovering somewhat from the lows they hit at the beginning of the week. Brent now costs more than $50 per barrel again, while WTI is priced at above $46 per barrel. 

The price recovery is finding support from a sharper than expected fall in US crude oil and gasoline stocks, as reported by the API after close of trading yesterday. 

The US Department of Energy will be publishing the official inventory data this afternoon, the focus no doubt being also on US crude oil production. 

"If it should turn out that the marked decline in production in the previous week was merely a flash in the pan, oil prices are likely to come under pressure. The considerable oversupply makes it unlikely that the price recovery that has been underway since yesterday will prove to be a lasting price increase", says Commerzbank.