Oil Edges Up as Traders Weigh Economic Risks Against OPEC Cuts - Bloomberg

Oil Edges Up as Traders Weigh Economic Risks Against OPEC Cuts - Bloomberg:

Oil ended another topsy-turvy day by closing near a two-week high, as traders weighed signs that OPEC is following through on production cuts against hints of an economic slowdown.

Global benchmark Brent crude rose, fell and then rebounded on Thursday, ending the trading session up 1.9 percent. Prices were spurred by signs that OPEC had made an early start on its pledged production curbs. Saudi Arabia also moved to increase prices in the U.S. and Asia, a signal that the world’s biggest exporter thinks demand will be sustained. Prices eased slightly after industry-funded report was said to show gasoline inventories jumped 8 million barrels last week, while crude stocks fell by 4.46 million.

“We really do need a sustained effort from some of the OPEC producers to take supply out of the market in order for prices to recover,” Jason Gammel, an analyst at Jefferies LLC, said in a Bloomberg television interview. “Now we’re starting to see that.”