Mar 02, 2016 (LBO) – Oil hit a near two-month high on Wednesday on the possibility that a global oversupply of crude oil has begun to shrink.
Brent crude was trading at 36.65 dollars per barrel, down 0.43 percent, on Wednesday, a level last seen in early January.
The global crude glut shrank by 12 million barrels in January, pipeline outages cut output in Nigeria and Iraq, while U.S. oil production fell for the first time since 2011 in December on a year-on-year basis.
Still, the International Energy Agency expects the massive build-up of crude and product inventories to continue into 2017. And refining profit margins have fallen leading to plants cutting back on crude-processing, analysts said.