Oil: Prices recover on solid U.S. data – GDP data eyed

Brent crude and West Texas Intermediate are trading higher today. Brent Crude added +0.96%, currently trading at USD49.60 a barrel, approaching the important USD50 level. On January 13th Crude hit a low at USD45.19. West Texas Intermediate gained +1.06% currently quoted at USD45.00. Yesterday the cost of WTI crude oil continued to fall reaching the lowest level in six years, due to an increase in US oil inventories. Meanwhile, the price of Brent crude oil have not changed.

The course of trade is also affected by expectations the publication of preliminary data on US economic growth in the fourth quarter. Analysts forecast the US economy expanding by 3.3%. Upbeat employment data fro the U.S. yesterday supported the oil price.

Oil prices fell by nearly 60 percent over the past six months, and both key brands of oil are currently trading below $ 50 a barrel as the worldwide supply 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.