Oil climbs above two-week low on slowing US supply

Global oil prices on the European market rose on Thursday for the first time in five days, to hold above the two-week low recorded yesterday, as the rise drew support from a slowdown in US supply, after the decline of US commercial inventories for the fifth week in a row, in addition to low production levels due to the Hurricane Barry.

By 10:15 GMT, US crude rose to $56.85 per barrel from the opening level of $56.50, with a high of $56.92 and a low of $56.44.

Brent crude rose to $63.95 per barrel from the opening of $63.52 and recorded a high of $64.00 and a low of $63.44.

US crude fell by 1.6% on Wednesday, the fourth daily loss in a row, hitting a two-week low of $56.24 per barrel. and Brent lost 1.2% and recorded a low of $63.24 (the lowest since July 5).

The US Energy Administration announced on Wednesday that the country's crude inventories fell by about 3.1 million barrels in the week ending July 12, the fifth consecutive weekly decline, while experts forecast a 3.6 million barrel drop.

According to the data, total US trade inventories fell to 456.2 million barrels, the lowest level since the week ending in April 11, in a positive sign of improved domestic demand in the world's top oil consumer.

US production fell last week by about 300,000 barrels, bringing the total to 12 million barrels per day, the lowest level since the week ending March 8.

This weekly decline is the first in the last three weeks, and the biggest since the week ending in October 12, 2018, after the disruption of production in the Gulf of Mexico due to Hurricane Barry.