After sliding lower early on in the session, crude oil futures cut losses and rebounded into positive territory amid high volatility on Thursday.
Speculation about a possible supply shortage contributed to oil’s recovery. According to reports, Saudi Arabia’s governor to the Organization of the Petroleum Exporting Countries has stated that crude exports from the kingdom
may drop by around 100,000 barrels a day in August, as the country wants to ensure there is no oversupply in the market.
Crude oil futures for August delivery ended up $0.70 or 1%, at $69.46 a barrel on the New York Mercantile Exchange, after touching a low of $67.80. Crude oil futures for September were trading at $68.19 a barrel, up $0.44 or 0.65%.
On Wednesday, Crude oil futures for August recovered from one-month lows and settled 1% up, as concerns over supply disruptions re-emerged on reports that Venezuela’s Amuay oil refinery has shut down a distillation unit.
Data from Energy Information Administration on Wednesday showed a larger than expected 5.8 million barrels jump in US crude inventories in the week ended July 13. However, gasoline stockpiles declined by 3.2 million barrels for the week and distillate stockpiles dropped by 400,000 barrels, and this pulled crude oil futures out of the red.