Oil sees recovery, but glut fear intact

By FXStreet FXStreet (Mumbai) – Oil prices witnessed a chart driven recovery, but the fears of oversupply are expected to restrict price gains.

At the time of writing, Brent Feb futures were up 42 cents or 1.17% at USD 36.65/barrel. WTI Feb futures were up 34 cents or 0.96% at USD 36.16/barrel.

Oil prices have dropped all along the year on concerns of oversupply. The future looks bleak after the OPEC raised its output ceiling at its Dec 3rd meeting.

Meanwhile, Saudi exporters soon may have to compete with US producers after President Barack Obama last w3eek signed a spending law that removed a 40-year ban on US oil exports.
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Source:: FX Street