Crude prices held steady after solid gains in the previous day when the declining U.S. fuel stocks bolstered the market.
But the international benchmark for oil prices, the Brent, continued to be below the key $50-per-barrel threshold on worries regarding high supplies from producer cartel OPEC regardless of a deal to slash output in an attempt to rebalance the market.
Brent crude futures traded at $49.67 per barrel, ticking down 3 cents below their last settlement. U.S. WTI crude futures were at $47.08 per barrel, 4 cents below their last close.
Prices surged almost 2 percent in the preceding session on reports of declining fuel stocks in the U.S.
U.S. crude inventories decreased by 4.7 million barrels in the week to July 14 down to 590.6 million bpd. This is contrary to the expected decline of 3.2 million barrels.
According to traders, the ongoing high stockpiles as well as elevated output from OPEC are preventing prices from increasing much further.
The material has been provided by InstaForex Company – www.instaforex.com