Oil prices recovered more than $1 a barrel from sharp losses on Thursday as the dollar eased but brokers said the downtrend could resume soon as record-high stocks and worries over slowing economic growth dampened sentiment. Brent crude oil was up $1.05 at $47.31 a barrel by 1150 GMT. U.S. crude was up 90 cents at $45.65. Both crude oil benchmarks moved up swiftly as the dollar slipped after the Bank of England decided unexpectedly to keep UK interest rates unchanged in the wake of the country's vote last month to leave the European Union.
National Average Price for Regular Unleaded – Current: $2.283; Month Ago: $2.232; Year Ago: $2.596. National Average Price for Diesel – Current: $2.923; Month Ago: $2.953; Year Ago: $2.998.
A short-term market report from the U.S. Energy Information Administration finds production will decline in most of the Lower 48 states and Alaska because of the pressure from lower crude oil prices, which the report said should stay below $40 per barrel through the first half of 2017. Onshore declines, the report said, should be offset by gains in the Gulf of Mexico in part because the offshore areas are less sensitive to short-term volatility in crude oil prices. "Several projects in the Gulf of Mexico that began operations or that will begin operations in 2014-16 will increase [regional] production from an average of 1.5 million barrels per day in 2015 to 1.9 million bpd in the fourth quarter of 2017," the report said.
Oil prices fell on Thursday as OPEC ministers met to decide how long to extend oil production cuts in an attempt to drain a global glut that has depressed markets for almost three years. One OPEC delegate at the meeting in Vienna said the group of 14 oil producers had agreed to extend cuts in production by nine months to March 2018. Brent crude oil LCOc1 dropped as much as $1.24 a barrel to a low of $52.72 before regaining some ground to trade 80 cents lower at $53.16 by 1100 GMT (7 a.m. ET). U.S. light crude CLc1 was 90 cents lower at $50.46.