Investing.com - Oil prices inched up on Thursday, but gains were limited as oversupply concerns remained a factor for oil markets.
Crude oil for delivery in January on the New York Mercantile Exchange tacked on 11 cents, or 0.27%, to trade at $42.06 a barrel during European morning hours. A day earlier prices dipped below $40 for the first time in ten weeks.
The U.S. Energy Information Administration said Wednesday that crude oil supplies rose by 252,000 barrels last week, disappointing market players who had hoped for a modest decline.
Supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, increased by 1.5 million barrels, the EIA reported, above forecasts for a build of 0.8 million barrels.
Total U.S. crude oil inventories stood at 487.3 million barrels as of last week, remaining near levels not seen for this time of year in at least the last 80 years, underlining concerns over a domestic supply glut.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for January delivery rose 24 cents, or 0.54%, to trade at $44.39 a barrel.
Meanwhile, the spread between the Brent and the WTI crude contracts stood at $2.33 a barrel, compared to $2.19 by close of trade on Wednesday.
The oil market has been on the defensive in recent months amid uncertainty about how quickly the global glut of crude is set to shrink.
Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the Organization of Petroleum Exporting Countries last year not to cut production.
OPEC will meet on December 4 to decide whether to extend their strategy of defending market share by keeping production high.