RIYADH: Oil rebounded over 2 percent on Thursday after posting the biggest two-day loss for the start of a year in three decades with the shutdown of a US fuel pipeline providing support, though economic concerns capped gains.
Big declines in the previous two days were driven by worries about a global recession, especially since short-term economic signs in the world’s two biggest oil consumers, the United States and China, looked weak.
Helping drive the gains on Thursday was a statement from top US pipeline operator Colonial Pipeline, which said late on Wednesday its Line 3 had been shut for unscheduled maintenance with a restart expected on Jan. 7.
“This morning’s rebound is due to the shutdown of Line 3 of the Colonial pipeline,” said Tamas Varga of oil broker PVM. “There is no doubt that the prevailing trend is down; it is a bear market,” he added.
Brent crude was up $1.75, or 2.3 percent, to $79.59 a barrel at 1116 GMT, while US West Texas Intermediate crude gained $1.63, or 2.2 percent, to $74.47.
Both benchmarks’ cumulative declines of more than 9 percent on Tuesday and Wednesday were the biggest two-day losses at the start of a year since 1991, according to Refinitiv Eikon data.
China, Philippines to promote cooperation on oil, gas projects
The Philippines and China will promote cooperation on oil and gas exploration in non-disputed areas, Beijing’s ambassador to the Philippines said on Thursday.
Ambassador Huang Xilian made the comment in a post on Facebook after a meeting between Chinese President Xi Jinping and Philippine President Ferdinand Marcos Jr.
Xi pledged to work with the Philippines on properly handling maritime issues through friendly consultation, resume negotiations on oil and gas exploration, promote cooperation on oil and gas exploration in non-disputed areas, and conduct green energy cooperation on photovoltaics, wind power, and new energy vehicles, Huang said.
Exxon sees oil and gas earnings ease in fourth quarter
Exxon Mobil Corp. said on Wednesday that it expected earnings from its oil and gas production to slow down in the fourth quarter from the prior quarter.
The largest US oil producer posted earnings of $12.4 billion from the unit in the third quarter, according to a securities filing.
(With input from Reuters)
