U.S. crude oil price fell early Thursday, following the sharp rebound we saw yesterday`s volatile trade, when the global benchmark picked up from its lowest level in nearly six years.
The rebound, however, has faded as fears of global oversupply reignited after a government report showed on Wednesday that commercial oil stockpiles rose last week. The U.S. Energy Information Administration (EIA) said U.S. crude oil inventories surged to 5.39 million barrel for the week ending in January 9, a bigger build than market consensus had expected before the release.
Meanwhile, negativity still dominates markets and oil prices are expected to continue declining, as the slight recovery witnessed on Wednesday was shortly lived.
West Texas Intermediate, the U.S. benchmark, was down 1.37% around $47.88 a barrel at 08:18 GMT.