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Oil hits near two-month high on supply slowdown


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.
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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.
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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.
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And refining profit margins have fallen leading to plants cutting back on crude-processing, analysts said.
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