Crude prices dropped in tepid Asia trade, dragged down by a sudden ascend in American crude inventories the previous week and films by Libya to spur output over the next few months.
However, the drop was curbed by a weaker greenback and optimism that oil producers would abide by an agreement to restrict output to prop up markets.
February delivery Brent futures had dropped 4 cents, hitting $54.42 a barrel, having previously concluded 89 cents lower. Prices leapt to $54.69 a barrel earlier during Thursday’s trading session.
American West Texas Intermediate crude futures sank 5 cents, hitting $52.44 a barrel, having closed the previous session down 81 cents. On Thursday, it nudged up to $52.71 a barrel during initial trade.
A weaker greenback makes greenback-denominated commodities, such as oil more affordable for holders of other currencies.
American crude stocks reported a surprise build the previous week, ascending by 2.3 million barrels compared with an expected drop of 2.5 million barrels, as the U.S. Energy Information Administration informed on Wednesday.
