Oil rises from 3-week low as supply concerns linger

Oil prices rose on Thursday from a three-week low touched in the previous session after consuming nations announced a huge release of oil from emergency reserves, as worries over tight supplies still clouded the market outlook.

Brent crude futures climbed $1.42 or 1.4%, to $102.52 a barrel at 0651 GMT, while U.S. West Texas Intermediate (WTI) crude futures rose $1.55, or 1.6%, to $97.78 a barrel, according to Reuters.

Both benchmarks plunged more than 5% in the previous session and hit their lowest closing levels since March 16.

International Energy Agency member countries on Wednesday agreed to release 60 million barrels on top of a 180 million-barrel release announced by the United States last week to help drive down prices in a tight market following Russia’s invasion of Ukraine.

State refiners in China, the world’s top oil importer, are honouring existing Russian oil contracts but avoiding new ones despite steep discounts, heeding a call for caution by Beijing. read more