Oil futures bounced back Wednesday from the day earlier’s sharp retreat, finding traction after data suggested a slowdown in U.S. shale production.
Prices on Tuesday came under pressure after a warning for 2019 global growth from the International Monetary Fund and weak economic data out of China, which underlined concerns about global economic growth and energy demand.
But support emerged late Tuesday from data out just ahead of the settlement and carried over to early trading so far. The Energy Information Administration estimated a rise of 62,000 barrels a day in February shale oil output, from a month earlier, to 8.179 million barrels a day. The agency had forecast an increase of more than double that for January from December.
West Texas Intermediate crude for March delivery CLG9, -1.91% rose 37 cents, or 0.7%, at 453.38 a barrel. March Brent LCOH9, +0.99% was up 50 cents, or 0.8%, to $61.97 on ICE Futures Europe.
Oil prices have risen by around 20% since hitting annual lows in the last week of December, largely moving in step with rebounding global equities. Cuts by the Organization of the Petroleum Exporting Countries and its allies are largely behind that market move. OPEC and 10 producers outside the oil cartel, led by Russia, agreed late in 2018 to collectively hold back crude output by 1.2 million barrels a day for the first half of 2019 to limit a supply glut and boost prices.