Oil edges higher after dropping on concerns over demand outlook
BNN Bloomberg
Oil edged higher from the lowest closing level in over three weeks even as investors considered the outlook for global demand amid concerns over the health of the economy.
West Texas Intermediate futures rose toward US$78 a barrel after dropping 2.2 per cent on Tuesday, while US equity futures advanced. Oil has this week struggled for direction with sentiment swinging with wider financial markets. An U.S. industry group reported a large drop in nationwide crude stockpiles, adding some positivity.
Crude is now close to where it was before the Organization of Petroleum Exporting Countries and its allies announced a shock production cut earlier this month. A deterioration in oil-refining profits over the last few weeks has left companies considering lower processing rates, and key indicators in the Asian crude market have continued to weaken.
