Oil bounced off 11-year lows, but oversupply restricts recovery

By FXStreet FXStreet (Mumbai) – Brent oil recovered from the 11-year low touched on Tuesday, but the gains remain capped on supply glut.

At the time of writing, Brent futures were up 15 cents or 0.41% at USD 36.53/barrel. Prices hit a 11-year low of USD 35.98/barrel on Tuesday. Across the pond, WTI futures were up 33 cents or 0.91% at USD 36.48/barrel.

The minor uptick could have been triggered by the API data released yesterday, which showed inventories fell 3.6 million barrels in the week ended Dec. 18, compared with an expected 1.1-million-barrel increase.

Meanwhile, unwinding of shorts ahead of a low liquidity between Christmas and New Year’s Day is also working in favour of prices.
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Source:: FX Street