Oil prices on Wednesday gave back earlier gains, retreating toward the previous session’s close near 11-year lows as concerns over growing supply and rising stock levels outweighed tensions between key Middle East producers. A rift between Saudi Arabia and Iran failed to boost prices this week, as it appeared to put an end to speculation that OPEC members could agree on production cuts to lift prices Reuters reported Jan 5, 2016.
U.S. crude for February delivery was 13 cents higher at $36.10 a barrel at 0419 GMT (11.19 p.m. ET Tuesday), after slipping 79 cents in the previous session.
Brent crude prices were up 12 cents at $36.54 a barrel, after closing down 80 cents. Brent hit an 11-year low of $35.98 a barrel just before Christmas.
“Crude oil oversupply is still in play; however the deficit between demand and supply is getting smaller,” said Daniel Ang, an investment analyst at Phillip Futures, in a note on Wednesday. “Possible changes to global supply should come from the U.S. and Iran.”
Concerns over mounting stock levels continue to add pressure to prices, with crude inventories in the United States likely to have risen by 439,000 barrels last week, according to a Reuters poll of eight analysts.