Oil prices jumped on Wednesday, rebounding from a bad Tuesday, which many thought spelled the end of the recovery.
West Texas Intermediate (WTI) Crude oil was at $38.91 (£26.95) as of 8:25 AM GMT, up 2.4% from a low of $37.99 the evening before.
Brent crude oil managed to go above the $40 mark at $40.38 (£27.97), up 2.3% from $39.54 16 hours ago.
The rebound is being put down to the Asian markets, who were pleased with a less than expected build in crude oil stockpiles according to Reuters.
It seems the industry is also waiting to see just how much stockpiles have built up.
“There’s a little bit of steadying in oil prices in the Asian time zone. The predominant attitude is one of wait-and-see until the Energy Information Administration [EIA] inventory figures come out,” said Ric Spooner, chief market analyst at Sydney’s CMC Markets.
This means the price rebound may not last for long, as the EIA figures are expected to show a 3.3 million barrel buildup, a record high for the seventh straight week.
This chart shows the small rise of WTI crude oil on Wednesday morning:
Brent crude oil also rose at a similar rate, though it currently stands at a higher price:
Meanwhile, CNBC reports that the oversupply issue could get worse as Kuwait and Saudi Arabia said on Tuesday that they would
resume production at the jointly operated Khafji field, which had been producing between 280,000 and 300,000 barrels per day back in 2014.
OPEC and other major oil suppliers, including Russia, are due to meet in Qatar on April 17 to discuss the oversupply crisis and potential price freezes.