Oil prices rebounded in today's trading after prices fell more than 7% in the last two days. Yesterday the Department of Energy has stated that during the week from 31 January to 6 February crude oil reserves rose by 4.9 million barrels to 417.9 million barrels, while the average forecast assumes an increase of 4 million barrels. It is worth emphasizing reserves reached a historical high for the entire period of reference of the statistics (since August 1982). Brent Crude added 1.79%, currently trading at USD55.64 a barrel. On January 13th Crude hit a low at USD45.19 and began to rise on reports on declining rig numbers in the U.S. and capital expenditure cuts. Crude registered the biggest 2-week gain in 17 years last week. West Texas Intermediate rose by 2.68% currently quoted at USD50.15, above the level of USD50 again.
Saudi Arabia, Iraq, Kuwait and Iran - OPEC's four biggest producers in the 12 member club - further cut prices to Asia in a fight for market share. Last week Saudi Arabia cut its prices to the lowest level in 14 years.
Worldwide supply still exceeds demand in a period of low global economic growth and the OPEC refusing to cut output rates to stabilize prices. Smaller OPEC members want to cut production but the organisation, responsible for 40% of worldwide production focuses on its fight for market share. Rising U.S. stockpiles are contributing to a global glut that drove prices lower. The U.S., Brazil, Russia and the OPEC are producing at record levels.