Oil prices steadied on Thursday after sharp losses the previous session as the International Energy Agency (IEA) said the world’s oil supply cushion “might be stretched to the limit” due to production losses.
Benchmark Brent crude oil LCOc1 rose $1.70, or more than 2.3 percent, to a high of $75.10 a barrel before losing almost all its gains to trade at $73.60, up 20 cents, by 1340 GMT. On Wednesday, Brent had slumped $5.46 or 6.9 percent.
U.S. light crude CLc1 fell 30 cents to $70.08 a barrel, after losing 5 percent the previous session.
“Warnings from the IEA of a potential spare capacity crunch are helping the energy complex … following yesterday’s bloodbath,” said Stephen Brennock, analyst at London brokerage PVM Oil Associates.