Oil rises on tightening US supplies

Oil prices rose on the US market opening on Thursday, after falling earlier in the European market due to weak data from the euro-zone economies. This rise is focused on a slowdown in the United States supply, following an unexpected drop in the commercial inventories and a drop in oil production from the highest levels ever. As of 12:25 GMT, US crude rose to $64.10 a barrel from the opening level of $63.87, recording a high of $64.19 and a low of $63.54. Brent crude rose to $71.85 a barrel from the opening price of $71.59, and recorded a high of $71.94, and a low of $71.18. As of yesterday, US crude lost 0.7%, its second loss in three days, and Brent crude fell 0.3% on correction and profit taking after hitting a five-month high of $72.25 a barrel. U.S. Energy Information Administration (EIA) announced yesterday that the country's inventories fell by 1.4 million barrels in the week ending April 12, the first weekly drop in a month, contrary to experts' expectations of a rise of 1.6 million barrels. As for the US production levels, last week it also fell by about 100 thousand barrels per day, the first weekly decline since the week ending March 8, bringing the total to 12.1 million barrels per day, abandoning the highest US production level every recorded at 12.2 million barrels. In Europe, data showed that Germany's manufacturing sector continued to contract for the fourth month in a row in April, as well as the contraction of the European manufacturing sector for the third month in a row. In a sign that the sharp fall in the European economic growth path was not temporary and that the economy is likely to enter into a long recession, which once again raised concerns about the global economic slowdown. While earlier, the International Monetary Fund (IMF) trimmed its global growth forecast for the lowest level in 10 years last week, as the economic slowdown negatively affects fuel demand levels.