After witnessing a sharp gain of ~9% on Wednesday international benchmark for oil, Brent and West Texas Intermediate (WTI) took advanced further in Thursday's morning trade to $54.56/bbl.
Crude oil posted its biggest single-day gain in over two years on Wednesday after Russian Energy Minister Alexander Novak’s statement to reassure investors that the market will be more stable in the first half of 2019 due to the deal between the Organization of the Petroleum Exporting Countries (OPEC) and its allies to cut output by 1.2mn barrels per day from January 2019 onwards.
Investors now await the American Petroleum Institute’s (API) inventory data due later today, while the US Energy Information Administration (EIA) is set to release its report on Friday. This data is expected to dictate crude oil prices in the coming days.
Meanwhile, both Brent and WTI has plunged ~40% from a four-year high in September on the prospect of a supply glut and concerns regarding global economic slowdown.