NYMEX crude trades weaker but in a narrow range above $52 per barrel Thursday after falling for last two trading sessions. Crude rallied nearly 28% from lows set last month however the rally seems to be losing momentum. The rally in crude oil came to a halt amid signs of higher US output and demand concerns amid increasing challenges to global economy.
US crude production stands at record high level of 11.9 million barrels per day and is expected to rise further. The latest EIA drilling report showed that production from shale resources is expected to rise from 8.12 million barrels per day in December to 8.18 million barrels per day in February.
Also weighing on price is API weekly report. API noted a 6.55 million barrels increase in US crude oil stocks as against expectations of 0.3 mn bbl decline.
Demand concerns rose as IMF lowered forecast for global growth in 2019 by 0.2% to 3.5% citing slower growth in European economies. IMF also warned about risks from fallout of US-China trade dispute. China's GDP rose in 2018 at the slowest pace in 28 years.
Global risk sentiment is weak amid concerns about US government shutdown, Brexit and US-China trade deal.