Oil prices rose on Thursday after sharp declines in the previous two trading sessions, but gains were limited as some investors disliked high-risk assets, as stock markets fluctuated and the dollar rose.
Oil futures fell strongly on Wednesday, following government data which showed a larger-than-expected increase in US crude inventories. US WTI futures rose 0.2%, to trade at $61.77 a barrel. Brent crude also increased by 0.3%, at $64.90 a barrel.
The crude fell by about 5% in February, the first monthly decline in nearly six months. Wednesday’s drop was also due to profit taking at the end of the month, after oil climbed to a three-week high earlier this week, sources said. However, oil is still under pressure as the dollar index rose to its highest level in five weeks.
The US Energy Information Administration said on Wednesday that US crude oil production broke a 47-year production record in November, and then dropped slightly in December, as rock oil production continued to bring about a fundamental change in global supply patterns. US oil production rose to 10.057 million bpd in November, according to revised figures from the Energy Information Administration.
The Department of Information said that production in December fell by about 108 thousand barrels per day, to 9.949 million bpd. The previous production index was 10.044 million barrels per day.
The average price of crude for Dubai was $62,721 a barrel in February, traders said on Thursday. The average price of crude in January was the highest since November 2014. Middle Eastern crude producers use these prices to set official selling prices for their ore every month.
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