Oil prices rise due to supply problems

Oil prices have grown during early trade in Asian markets on Wednesday, reducing losses recorded on the previous session. The decline was reasoned by various announcements on the U.S. crude oil stocks decrease. These announcements raised concerns on supply constraints, but on the other side, neutralized concerns on lower demand from such a top oil importer as China.

As of the end of last week ended on October 14, the U.S. crude oil stocks fell by about 1.3 million barrels.

However, it’s expected that the U.S. stocks will grow during the current week. Today at 14:30 GMT the Energy Information Administration, the independent statistical and analysis arm of the U.S. Department of Energy, will present inventory data, which may clarify the situation.

CMC Markets analyst Tina Teng outlined that oil prices got an extra support due to a more positive attitude of investors towards risk, which was backed by optimistic U.S. corporate earnings and a pause in the bond growth.

Teng also added that the selloff in oil markets, driven by a fear of recession, has slowed down.