Investing.com - Crude oil futures edged higher on Thursday, rebounding from two days of heavy losses which took prices to their lowest level since mid-February, as traders continued to asses the state of the global economy.
On the New York Mercantile Exchange, light sweet crude futures for delivery in May traded at USD102.32 a barrel during European morning trade, gaining 0.85%.
It earlier rose by as much as 0.95% to trade at a daily high of USD102.41 a barrel. Oil futures fell to USD101.07 a barrel on Wednesday, the lowest since February 15.
Trading is expected to be thin ahead of the Easter holiday. Markets in the U.S. and Europe will remain closed on Friday in observance of Good Friday. Most markets in Europe will be shut next Monday as well.
Oil prices plunged nearly 4% in the two sessions leading up to Thursday, as markets were spooked by a dismal Spanish bond auction, which sparked concerns over the health of the euro zone’s fourth largest economy.
The renewed euro zone concerns further undermined appetite for riskier assets, which already took a hit after minutes from the March meeting of the Federal Reserve's Open Market Committee released Tuesday indicated that the central bank was unlikely to introduce more stimulus measures to help boost the U.S. economy in the near term.
Meanwhile, a massive build in U.S. oil supplies last week is forcing traders to refocus on the supply and demand picture after tensions with Iran drove market action in recent months.
The U.S. Energy Department said in its weekly report that crude oil inventories surged by 9.0 million barrels last week, the biggest supply gain since 2008.
Total U.S. crude oil inventories stood at 362.4 million barrels as of last week, the highest since May 2011, underscoring fears over a slowdown in oil demand from the U.S.
Attention now shifts to Friday’s U.S. non-farm payrolls data, which could shed further light on the strength of the U.S. economy and the need for further monetary easing in the U.S.
Oil traders have long been taking cues from the monthly jobs report, the most-closely followed indicator of U.S. employment.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand. Investors often use manufacturing numbers as indicators for future fuel demand growth.
Meanwhile, markets continued to monitor tensions between Iran and the West and a potential disruption to oil supplies from the region.
Analysts at Barclays said in a report Wednesday that while the Iranian situation is unlikely to be resolved this year, an escalation to military conflict is also highly improbable.
"While the situation does have the potential to turn hotter in 2013 and to possibly do so later this year, we suspect that in the interim the oil market may lose focus on the Iranian situation and for it to temporarily cease to be a major market driver," the bank said.
Iran and six world powers will meet in Turkey on April 13 and 14 for a round of talks over Tehran's disputed nuclear program, U.S. officials said last week.
The stand-off between Iran and Western countries has dominated sentiment in the oil market in recent months.
Growing tensions between Iran and Israel also remain in focus. There are fears that an escalation of hostilities between Israel and Iran could set off a conflict across the region and send oil prices skyrocketing.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for May delivery rose 0.8% to trade at 123.29 a barrel, with the spread between the Brent and crude contracts standing at USD20.97.
Brent prices remained supported amid prospects of tighter crude supplies from the North Sea region, as well as supply disruption fears in South Sudan and a reported halt of Iraqi oil exports from the Kurdistan region.
On the New York Mercantile Exchange, light sweet crude futures for delivery in May traded at USD102.32 a barrel during European morning trade, gaining 0.85%.
It earlier rose by as much as 0.95% to trade at a daily high of USD102.41 a barrel. Oil futures fell to USD101.07 a barrel on Wednesday, the lowest since February 15.
Trading is expected to be thin ahead of the Easter holiday. Markets in the U.S. and Europe will remain closed on Friday in observance of Good Friday. Most markets in Europe will be shut next Monday as well.
Oil prices plunged nearly 4% in the two sessions leading up to Thursday, as markets were spooked by a dismal Spanish bond auction, which sparked concerns over the health of the euro zone’s fourth largest economy.
The renewed euro zone concerns further undermined appetite for riskier assets, which already took a hit after minutes from the March meeting of the Federal Reserve's Open Market Committee released Tuesday indicated that the central bank was unlikely to introduce more stimulus measures to help boost the U.S. economy in the near term.
Meanwhile, a massive build in U.S. oil supplies last week is forcing traders to refocus on the supply and demand picture after tensions with Iran drove market action in recent months.
The U.S. Energy Department said in its weekly report that crude oil inventories surged by 9.0 million barrels last week, the biggest supply gain since 2008.
Total U.S. crude oil inventories stood at 362.4 million barrels as of last week, the highest since May 2011, underscoring fears over a slowdown in oil demand from the U.S.
Attention now shifts to Friday’s U.S. non-farm payrolls data, which could shed further light on the strength of the U.S. economy and the need for further monetary easing in the U.S.
Oil traders have long been taking cues from the monthly jobs report, the most-closely followed indicator of U.S. employment.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand. Investors often use manufacturing numbers as indicators for future fuel demand growth.
Meanwhile, markets continued to monitor tensions between Iran and the West and a potential disruption to oil supplies from the region.
Analysts at Barclays said in a report Wednesday that while the Iranian situation is unlikely to be resolved this year, an escalation to military conflict is also highly improbable.
"While the situation does have the potential to turn hotter in 2013 and to possibly do so later this year, we suspect that in the interim the oil market may lose focus on the Iranian situation and for it to temporarily cease to be a major market driver," the bank said.
Iran and six world powers will meet in Turkey on April 13 and 14 for a round of talks over Tehran's disputed nuclear program, U.S. officials said last week.
The stand-off between Iran and Western countries has dominated sentiment in the oil market in recent months.
Growing tensions between Iran and Israel also remain in focus. There are fears that an escalation of hostilities between Israel and Iran could set off a conflict across the region and send oil prices skyrocketing.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for May delivery rose 0.8% to trade at 123.29 a barrel, with the spread between the Brent and crude contracts standing at USD20.97.
Brent prices remained supported amid prospects of tighter crude supplies from the North Sea region, as well as supply disruption fears in South Sudan and a reported halt of Iraqi oil exports from the Kurdistan region.